Prior period expense whether allowed in income tax or not ??
This query is : Resolved
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CA Abhishek Singh
(Querist)
07 September 2023
suppose purchases made during the year 100 cr which is reflected in GST. However invoice for 1 cr purchases is not found at the time of audit/nor duplicate copy collected from parties upto the date of audit and it is disallowed by the auditor in fy 21-22.
however party gave duplicate copy of invoice post audit.
My question : can 1 cr purchase accounted in fy 22-23 pertaining to fy 21-22 be allowed as expenditure in fy 22-23 ??
however party gave duplicate copy of invoice post audit.
My question : can 1 cr purchase accounted in fy 22-23 pertaining to fy 21-22 be allowed as expenditure in fy 22-23 ??
CA R SEETHARAMAN
(Expert)
07 September 2023
Yes in case of sale income related to such purchase is accounted in stock or sale during the year or in the previous year.
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CA Abhishek Singh
(Querist)
07 September 2023
sale accounted in FY 21-22
CA R SEETHARAMAN
(Expert)
07 September 2023
Yes, you can account it as prior period expenses.
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CA Abhishek Singh
(Querist)
07 September 2023
thanks. you mean it will be allowed as deduction in fy 22-23 although sales booked in fy 21-22
CA R SEETHARAMAN
(Expert)
07 September 2023
Yes it will be allowed as corresponding income is shown in previous year.
Case laws are there in favour of it.
Case laws are there in favour of it.
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