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. :)
O P Bagla & Co LLP
New Delhi
CA Inter
View Details
T R SOOD & CO
New Delhi
CA Inter
View Details
Vardhaman Group of India
Pimpri Chinchwad
CA Inter
View Details
SMJ global advisors pvt ltd
New Delhi
B.Com
View Details
CAclubindia
