Disallowance of prior period expenses
This query is : Open
CA Karthik N Rao
(Querist)
05 July 2014
For example ,
If an expense has been omitted to be booked in year 1,then we would have paid more tax with respect to amount of expense ignored
If we book the same expense in year-2,it will be disallowed as prior period expenses and again tax burden will increase to such extent
This leads to Double taxation.
Weather my interpretation is correct???
If an expense has been omitted to be booked in year 1,then we would have paid more tax with respect to amount of expense ignored
If we book the same expense in year-2,it will be disallowed as prior period expenses and again tax burden will increase to such extent
This leads to Double taxation.
Weather my interpretation is correct???
CA Mohit Bansal
(Expert)
06 July 2014
No. There is no disallowance of prior period expenses in Income Tax Act
CA Karthik N Rao
(Querist)
07 July 2014
Please clarify, why prior period expenses are not disallowed and which section states that??
CA Karthik N Rao
(Querist)
07 July 2014
whether in second year ,above mentioned expense will be allowed???
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