Shabir Ahmad Mir (Student) (26 Points)
11 June 2008What will be the accounting treatment of expenditure disallowed by IT department while any AY was under scruitny and assessment order has been passed and subsquently tax paid by the assessee after such disallowance.?
Pushkraj Sathe
(Chartered Accountant)
(203 Points)
Replied 11 June 2008
Expenditure has been merely disallowed by the Assessing officer hence no entry is required for such expenditure.Think of some expenses which are per se not allowed like Penalty for infringement of any law.Likewise in the opinion of the AO though it is spent but not allowed.
Had the AO found out certain unaccounted income,expenditure,unaccounted cash or stock then entry would be required.
Azmathullah Khan
(Accounts Manager)
(1386 Points)
Replied 11 June 2008
No such entry should be reflected or enter in the books of account. it only in your computation.
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