Adjustment


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Querist : Anonymous

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Querist : Anonymous (Querist)
19 December 2014 Can we claim deduction in income on prior period adjustment debit balance?

19 December 2014 pls mention the item of income..........

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Querist : Anonymous

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Querist : Anonymous (Querist)
19 December 2014 My question is while computing Current year Income Tax, we can adjust prior period expenses against current yr incomes or not??

19 December 2014 if such exp wasnt taken as deduction prev year then yes.

20 December 2014 Dear Mr. Sampat prior period expenses are not allowed in all cases if earlier no provision has been made under section 37.

Further, prior period income will be Taxable in all cases under section 152(1)

Therefore, no adjustment are possible at all.

For main query also you can not adjust prior period income with debit balance

Rupesh Jain (Expert)
20 December 2014 you can adj the previous year exp. if you file the return of income on time. loss carried forward in income tax return then you can claim the loss in current year return .

20 December 2014 please provide a refrence or supporting for non allowance of prior period items as dedcution in current year or any case law

20 December 2014 Dear Mr. Sampat you can refer the following ruling of ITAT in case of M/s. Tipco Industries Ltd. Vs. ACIT


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