Prior Period Expense Disallowance

Tax queries 1029 views 1 replies

Suppose a Company omitted to account for an expense by mistake (assume it is not subject to TDS) in the previous year 2008/09. Company accounted that expense Rs.1000  in the subsequent previous year 2009/10 as prior period expense. While computing the taxable income of the previous year 2009/10, is that amount of Rs.1000, an allowable expense? or if it is to be disallowed, under which section of the Act it is done so? please help...Thank U!

Replies (1)
as per my opinion It cant be allowed But i m not sure, wait for the experts' reply


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