Expense querry

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Jyoti (Querist)
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24 December 2012 I would like to ask if a sole properitorship firm has taken shed on rent for 5 months and paid rent aprox.rs.10000 but the owner of shed didnt give any receipt of such rent paid. I would like to ask whether such expense incurred can be claimed as an expense?

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Anand

Anand (Expert)
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25 December 2012 How was the rent paid? By cash or cheque?
If by cheque it can still be claimed
If by cash, speculation can be certainly raised by the Assessing Officer regarding the genuineness of the expenditure.

If receipts were not taken, the individual should address a letter to the said owner stating the amount paid and dates and obtain his confirmation of the same.
If you have such a letter you can still safely claim the expenses.

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