Maximum limit for Misc. Expenses in a month ?

This query is : Resolved

S B Das (Querist)
Follow

05 August 2010 I am working in a distributorship firm of Lubricants for HPCL and BPCL. Is there any maximum limit for Misc. Expenses in month or I can show unlimited amount as Misc. Expenses with supported Cash Memo and Bills.

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
Follow

05 August 2010 If expenses are relating to the business; then you can show them in the month when you incurred. There is no limit.

A proper justification should be there why you incurred such a heavy expenditure in a particular month.

Not only this question may be asked by your auditors but by the Income-Tax Department also if your case is selcted for scrutiny.