Sir,
Please clarify the following query regarding computation of incometax.
A company has paid in AY 2012-13 amount of Rs. 14,00,000/- for block assessment as per assessment order given by ITO for AY 2007-2008, Should thIs amount paid be allowed in return of income for AY 2012-13 or should we disallow it completely????
pls reply asap. . .
thanks in advance
Income Tax payment has to be disallowed.
Regards,
Devendra Kulkarni
Income tax act allows deduction of expenses from income which are related to business activity, so payment of taxes and interest, penalty etc. thereon are disallowed for deduction from income.
Regards,
Gaurav
CAclubindia
