23 March 2012
A Company has been sealed by the Income Tax department and ordered not to carry on any work in future with effect from Dec.2010. Preliminary Expenses in the books as on the above date stands at Rs.28,000/-. While finalization of Accounts for A.Y. 11-12, what should be the treatment of Preliminary expenses? Should it be completely written off or any alternative treatment?? Please Explain.
24 March 2012
What if when a company is in running process, preliminary expenses were written off @20% for 3 yrs, After AY 2007-08, it was written off @10% As per law the preliminary expenses would have been written off if it would have been charged correctly. What should be the present Treatment of the left out value of preliminary expenses in the AY 2011-12.??
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