Sir, my question is , whether any compensation paid to employee on order of court due to accident of employee during the course of employment is allowable business expenditure or not ? Also if assesse have debited the compensation paid in P&L A/c, whether we should mention this item of expenditure in the Tax Audit report, if yes in which clause ?
It should be allowed as an busines expenditure as it doesn't voilate any of section 30 to section 37 of Income Tax Act. I dont think, tax audit report requires any clause for separate disclosure of this type of transactions.
Thanks and Regards,
Manoj B. Gavali
Thanku Sir. :)
Thanku Sir. :)
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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