26 August 2010
Is there any provision for disallowance under the IT act,1961, relating to previous year expenses debited in the current year other than statutory payments.
26 August 2010
See Normal under / over accruals are not considered as prior period expense. Further, in accordance with the method of accounting followed, any item, which although it relates to an earlier year, materialized or crystallized during the year or arose out of an event during the year, has been considered as expenditure/ income of the year.
so though the same can be disllowed u have to prove ur expenses claim within the above mentioned statement.
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