Prior period Expenses

This query is : Resolved

Hemant Bhandari (Querist)
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14 August 2008 Whether Prior period expenses is allow as a deduction under Income Tax Act?

If Yes than how can????
If no pls speccify appropriate section or circular

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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14 August 2008 Give an example. It depends upon case to case.

Hemant Bhandari

Hemant Bhandari (Querist)
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14 August 2008 Like Maintainence expenses incurred in the year F.Y. 2005-06 but payment and recognisition has been done in current financial year...

What if, Expenses of maintainence is ccapital nature(considere above example)

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SANDEEP AGGARWAL

SANDEEP AGGARWAL (Expert)
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16 August 2008 Prior period exp. is not allowable
u/s 37(1) for calculating business/ profession income.Because 37(1) say it should relate to current year and it should not capital in nature and should not be personnal in Nature.

However you can revise your previous year return and claim in that year.

Regards,
Sandeep Aggarwal