The Company has done provision of Rs. 50 Lakhs in F.Y. 2017-18, but failed to do reverse entry of the provision of 50 lakhs in F.Y. 2018-19. The Company has paid the said amount in F.Y.2018-19 and again debited to P&L on payment basis.
Financial reports were already submitted with ROC and Income Tax return by the company.
Questions
1. Can company do the reverse entry in F.Y. 2019-20?
2. What will the effect to the Income Tax for year 2018-19 & 2019-20?
Solutions in deep require
Please explain
Thanks & Regards
CAclubindia
