Previous year exp.

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Querist : Anonymous

Querist : Anonymous (Querist)

11 April 2016 Dear experts,
can company avail exp. deduction pertains to FY 2014-15 in FY 2015-16,

please reply.......

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 April 2016 Yes it can be availed.........

Amol S Joglekar

Amol S Joglekar (Expert)
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11 April 2016 So far as income tax act is concerned, such an carry over is NOT permitted.

Querist : Anonymous

Querist : Anonymous (Querist)

11 April 2016 Sir both of you has replyed differently.... hence its hard for me to stand with your reply... please provide me any case law, section, circular for the same,

Amol S Joglekar

Amol S Joglekar (Expert)
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12 April 2016 section 37 of the income tax act. It is a well decided principle of the Act that the expenditure of the current year is allowed in the current year. (Exception is Capital expenditure like building, machinery etc)

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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12 April 2016 Delhi High court in the case of Khaitan Chemicals & Fertilizers Ltd case allowed such deductions.

Querist : Anonymous

Querist : Anonymous (Querist)

12 April 2016 What is the final decision weather to allow or not....however if i book previous year exp. In current year will income tax deptt. Accept such expenditure in respect of delhi high court decision....

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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12 April 2016 Yes the income tax dept accepts such booking and in our company such bookings are allowed.

Querist : Anonymous

Querist : Anonymous (Querist)

12 April 2016 Sir you have pointed out in our company such bookings are allowed, does that means your are pactically dealing such issue No circumstances also let me know the Expenditure bill date is 17/12/2014 in FY 2015-16, on which date we can book this said bill,
Your view plz......

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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12 April 2016 I dealt with such bookings. If the payment is made in FY 2015-16 book it on the payment date.

Querist : Anonymous

Querist : Anonymous (Querist)

12 April 2016 Sir. Payment was made on the same date on 17/12/2014...

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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12 April 2016 You can book it on any date during the year or at the end of the year. Such omission in booking might have known to you during cash/bank reconciliation.

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