Admissibility of prior period item in Income tax act

We have incurred Around6 lacs of local authority expense of which only 1 lacs pertains to current period while remaining relates to previous periods.

The notice for the same expense was served for the 1st time in May'11 by the local authority for all the previous years i.e. from 2005-06 to 2010-11.

We have paid the full amount in July'2011.

Can we claim these expense in full?

if yes, then are these expenses allowed in the F.Y 2010-11 by making provision or in F.Y. 2011-12 in which we have paid?

Expecting early response....

Replies (3)

If no provision was made for the year 10-11, then the said expenditure is disallowed for the year 11-12 as a pror period expenditure.

My Friend,

 F.Y. 2011-12 as whole expenses as deduction...........

for more reference refer section 30.


 

Can u pls tell what is local authority expenses and why it was incurred?

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