Dear Experts,
Company A rented a premises starting January 2025. Due to disagreements with the (unregistered) vendor, rent invoices for February and March 2025 were not issued on time and were only raised in April 2025. No provision for these expenses was made in the books during FY 2024-25. As a result, the rent expense for Feb and Mar 2025 can't be claimed in the ITR for AY 2025-26, and if claimed in the next year, it may be disallowed as a prior period expense.
What options are available to legitimately claim these expenses? Is there a possible accounting or tax treatment that would allow for their deduction?
Regards,
S Ram
CAclubindia
