Accounting treatment on expenses disallowed by i.t.

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Anwar Shaikh (Querist)
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17 December 2012 Dear Experts,

1) If in case of assessment AO disallow some expenses debited to P&L 3 years back, then what will be accounting treatment ?

2) If AO adds some income at the time of assessment, then what will be accounting treatment ?

Thanks.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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17 December 2012 1. It means that short provision you have made in the earlier years now it will be recorded like-

Short/Excess provision for IT A/c Dr. XXX
To Provision for IT(A.Y....) XXX