Admissibility of prior period expense under it act
This query is : Resolved
10 September 2011
We have incurred Around Rs. 6 lacs of local authority expense of which only 1 lacs pertains to current period while remaining realtes to previous periods.
The notice for the same expense was served for the 1st time in May'11 by the authority for all the previous years i.e. from 2005-06 to 2010-11.
We have paid the full amount in July'2011.
Can we claim these expense in full? if yes, then are these expenses allowed in the F.Y 2010-11 by making provision or in F.Y. 2011-12 in which we have paid?
Expecting early response....
The notice for the same expense was served for the 1st time in May'11 by the authority for all the previous years i.e. from 2005-06 to 2010-11.
We have paid the full amount in July'2011.
Can we claim these expense in full? if yes, then are these expenses allowed in the F.Y 2010-11 by making provision or in F.Y. 2011-12 in which we have paid?
Expecting early response....
11 September 2011
Prior Period Expenses are not allowed under Income Tax Act
15 September 2011
I am really sorry for this but the expense being statutory payment to local authority thus as per section 43b we may claim it
As per Section 43B clause (a) - Any sum payable by way of tax, duty,cess or fee (by whatever name called under any law for the time being in force) are deductible on payment basis subject to :-
1. payment of such expense is made on or before the due date of filling of return and
2. Evidence of such payment is submitted along with the Return of Income
We are having evidence of payment as well
As per Section 43B clause (a) - Any sum payable by way of tax, duty,cess or fee (by whatever name called under any law for the time being in force) are deductible on payment basis subject to :-
1. payment of such expense is made on or before the due date of filling of return and
2. Evidence of such payment is submitted along with the Return of Income
We are having evidence of payment as well
15 September 2011
Whether this expense cannot be claimed U/S 43B
15 July 2023
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