Double Deduction of Expenditure
This query is : Resolved
14 November 2010
Dear all
one of my client doing civil contract business deduct one head of expenditure twice once it has deducted from gross receipt and secondly debited to income expenditure account,the amount of diff is about 3.5 lacs and N.P. Ratio is 4.5 % the A.O.wants to tax whole amount to taxed while assessee proposing to tax the amount at 4.5 % or even higher at 8%
Does he have any rescue,pl. guide
R.C. Sharma
Siddharthnagar
one of my client doing civil contract business deduct one head of expenditure twice once it has deducted from gross receipt and secondly debited to income expenditure account,the amount of diff is about 3.5 lacs and N.P. Ratio is 4.5 % the A.O.wants to tax whole amount to taxed while assessee proposing to tax the amount at 4.5 % or even higher at 8%
Does he have any rescue,pl. guide
R.C. Sharma
Siddharthnagar
14 November 2010
Dear Sharmaji,
If NP is 4.5% then the Gross Receipts would be exceeding Rs. 40.00 lacs or the accounts of the client were supposed to be prepared and get audited.
The ITO in this situation is right in making the addition of the amount which has been excessively claimed.
If NP is 4.5% then the Gross Receipts would be exceeding Rs. 40.00 lacs or the accounts of the client were supposed to be prepared and get audited.
The ITO in this situation is right in making the addition of the amount which has been excessively claimed.
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