19 November 2008
deductibility of prior period expenses under income tax act.is there any particular section which speaks about disallowance of prior period expenses?
19 November 2008
In section 37, it is mentioned that any expenditure other than personal and capital, being laid out or expended, can be claimed as deduction.so how it can be taken for granted. The term incurred is nowhere mentioned in that section.. please help me out..
20 November 2008
There are one more condition in section 37(1), that it should be incurred in previous year. Since prior period exp. are not incurred in previous year, it can not be claimed. Although it can be claimed by revising the return of that previous year in which it was incurred but due to error or ommission it was not claimed.
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