Prior period expenses.

This query is : Resolved

shreeni (Querist)
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21 July 2015 Hello Everyone,

One TDS survey has taken place with my client and Assessing Officer demanded TDS on Interest paid on other than securities amounting to Rs 30 Lakhs. This demand is related to FY 2008-09 to 2013-14. The said amount was paid in FY 2014-15 and reduced from net profit by debiting the P&L A/c.

Now my query is weather we can claim this amount as expenses? previously none of AO added back the interest expenditure as Expenses without TDS, can the AO reopen the previous year assessment for which TDS has not been effected and disallow the said expenditure.

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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21 July 2015 Inteerest on Income Tax will be allowed as expenses under section 37(1) of Income Tax Act 1961.

Therefore interest on TDS will not be allowed as expenses

Thanks