Accounting treatment of income added under sec 143(3)

Hi,

Please go through the assessment order. 

check what is the credit of taxes given with the return filed and comapre the tax laibilty arrived with the tax computed and actual provision made for the same in the books 

pass the following entry. assuming you have a short provision

Income tax paid p & l a/c  Dr (Short provision will be disallowed in computation)

Interest on Income tax Dr

provision for tax                  Dr

Advance tax /TDS credit    Cr

hope it clarifies.

The income added with your income by the AO is not to be added with your income, because it is a notional income only. The IT paid to be debited to P&L ac and subsequently it is disallowed.