Prior year expenses/incomes

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CA Sanjay Baheti (Querist)
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19 September 2010 How to be considered such expenses/incomes in case of assesse being following mercantile method of accounting both in books as well as from tax point of view i.e. in books whether the same can be seperately disclosed by way of said account & from taxation point of view whether only disclosure is required in tax audit report along with seperate annexure forming part of report or to be added in business income while computing Taxable Income.

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Jitender

Jitender (Expert)
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19 September 2010 If according to the method of accrual accounting, some items were not stated in the previous year by mistake, those items are required to be stated as PPI in the current year.