09 May 2016
As per Income tax any expense related to business is allowed. This shall be for each financial year. Unlike Accounts there is no provision for Prior Period Item. But we can show this as Arised/Accrued in this year and claim as deduction.
09 May 2016
AO can disallow on the grounds it belongs to diff assessment year and may ask to revise that return and carry forward loss or take refund of excess tax. Better option is show a current year expense and claim the deduction.
CAclubindia
