Section 43b (it act) allowablity on prior period expenses

Making provision as on 31/03/2016 doesn't qualify it as prior period item .

The deduction is allowable to the employer assessee if he deposits the contributions to welfare funds on or before the ‘due date’ of filing of return of income.
43B of the Income Tax Act, 1961allows for claiming tax deductions only on the basis of actual payments.

The CBDT vide Circular No. 22/2015 dated 17-12-2015 [ F. No. 279/Misc./140/2015-ITJ ] has clarified regarding allowability of certain expenses u/s 43B of the Income Tax Act, 1961 as under:

 

No disallowance can be made u/s 43B of the I.T. Act if assessee deposits any sum payable by it by way of tax, duty, cess or fee by whatever name called under any law for the time being in force, or any sum payable by the assessee as an employer by way of contribution to any provident fund or superannuation fund or gratuity fund or any other fund for the welfare of employees, on or before the ‘due date’ applicable in his case for furnishing the return of income under section 139(1) of the Act.

u can claim it . Because as5 is notified in IT act also

thank you for reply 

actually i have also the same view but my principal is disallowing the same.

where the accounting standards in IT act  are notified can u pls tell me

 

 

yes i refer this circular :)

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