Prior period expenses

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Randeep Singh (Querist)
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10 May 2009 Are prior period expenses are disallowed in current year?
If yes, why, because if we had not accrued them then in last year also we had not taken under exp, so if in current year these are disallowed then is it total loss for co. means in neither of years it is allowed.

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
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10 May 2009 Yes.
They are disallowed according to Sec.37(1) of the Income Tax Act.
But you can revise your returns and claim the expenses.

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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10 May 2009 i agree with the expert, AS and Income tax are different issues.

Late CA Sampat Jain

Late CA Sampat Jain (Expert)
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11 May 2009 If you have not accrued last year,it does not mean it has not accrued in last year. In fact as per mercantile system of accounting you have to follow accrual method.

You can revise the return of last year and claim the same.

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