Accounts
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
15 November 2013
Hi Friends,
We have client which was incorporated in F.Y 2012-13, during the financial there was no Income at all, only Expenses of Rs.99500(roughly) was incurred saying that Pre Incorporation and, Pre Operative Expenses and which Also includes Rs.500 Dep. on Fixed Assets. Now My query is whether I should Prepare P&L Statement or Not, stating That above Expenses. But as per my openion these should be Shown under Non Current Assets As a Miscellaneous Exp. to the extent not written off. But in recent past we have received a notice from IT Department stating that the Assessee has not disclosed the P&L Amounts in Return of Income.how it is Possible to amortize Preoperative Expenses without having Income in P&L A/c. Pls suggest me how to handle this Problem.
We have client which was incorporated in F.Y 2012-13, during the financial there was no Income at all, only Expenses of Rs.99500(roughly) was incurred saying that Pre Incorporation and, Pre Operative Expenses and which Also includes Rs.500 Dep. on Fixed Assets. Now My query is whether I should Prepare P&L Statement or Not, stating That above Expenses. But as per my openion these should be Shown under Non Current Assets As a Miscellaneous Exp. to the extent not written off. But in recent past we have received a notice from IT Department stating that the Assessee has not disclosed the P&L Amounts in Return of Income.how it is Possible to amortize Preoperative Expenses without having Income in P&L A/c. Pls suggest me how to handle this Problem.
Nikhil Kaushik
(Expert)
15 November 2013
you need to charge the expenses to Profit and loss account and show loss as net result. You need to charge the expenses and carry on the accumulated losses. When you start making profit the accumulated loss shall be wiped off.
With regards to depreciation, the same shall be allowed only if the assets have been put to use.
With regards to depreciation, the same shall be allowed only if the assets have been put to use.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Tax on Amount transferred in HUF Account
- Nursery business
- GST input credit on commercial property
- Working on Gold wastage during Melting of old gold jewellery
- GST REFUND ISSUE ON PURCHASE OF PLANT AND MACHINERY
- TDS on Dashcam rent and allied services
- Capital Gains Tax on Inherited Mutual Fund
- TDS- 2026-27 Q1 Correction
- Gift to nri relatives residing in usa
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
