04 September 2009
Hi friends, one of our client has paid property tax for the financial year 2007-08 in the year 2008-09 and claimed the same as an expense in 08-09 however no provision for the liability of property tax was made in the balance sheet of 2007-08. whether the expense should be allowed for income tax under section 43B on the basis of cash payment of tax or should be disallowed as prior period expense. Pls. advise. thanks
05 September 2009
dear friends, thanks a lot for your response. in this regard, i had further query that any expense covered u/s 43B will be allowed under section 43B only when the same was payable on 31.03.2008. Since there was no provision for the property tax as mentioned in my query in the balance sheet as on 31.03.2008 in that case, what will be the situation? Pls. advice thanks
CAclubindia
