Income Tax exp.

Anmol Singla (808 Points)

04 December 2021  
one of my client had case with PSPCL going on for 2017-18, which he lost in current financial year.
he deposited some amount in FY 2020-21, and balance paid in current financial year with interest and penalty.
Can we claim amount deposited in 20-21 as an expense and further balance interest and electriciry amount in balance sheet of fy 20-21, as case is finalised now and we can easily determine the provision amount.
and whether such amount will be considered as prior period expenditure and can we claim amount paid in penalty as expenditure