A company has completed its audit for FY 2014-15. Auditor has file tax audit report for that year and auditee accept the tax audit report. But the company has not filed his Income Tax Return on due date.
After the due date of ITR while filing of ITR as on 31.03.2016 which is last date of AY company has identify that one of expenses was not recorded in books of account therefore company has claim this expenses on their Income Tax Return (belated ITR) and next FY 2015-16 company has adjusted this expenses amount from opening balance of profit and loss account.
Now company has got the regular scrutiny notice from Income Tax department and they disallow this expenses only because company has not debited this expenses in their profit and loss account ?
Please Suggest me whether department is correct or not ?
And why this expenses is not allowable ?
CAclubindia
