Deepak Kumar (Chartered Accoountant) (270 Points)
20 March 2013My Compnay is real estate company. & we have capilalized interest paid on running projects uptoF.Y. 08-09, But in F.Y. 09-10 we can not capitalized interest paid & claim in revenue. In Scruity case u/s 143(3) A.O. disallowed Interest paid in Sec 36(1) (iiii) saying that in previous year comapny has capitalized interest on running project. Now can our company increase project value by disallowed amount in F.Y. 12-13. & if yes pls answer with quoting section or case law.
thanking you
Vineet Jaiswal
(CA)
(141 Points)
Replied 21 March 2013
At the outset, it is to be mentioned that if the interest was debited to P/L account in FY 2009-10 following the principles laid down in the Accounting Standard then the same is not to be tinkered. The adjustment in 143(3) order would create a new value for the project w.r.t. tax.
However, if there was an error in debiting it to the P/L account in FY 2009-10, then the same can be rectified in FY 2012-13 by crediting the P/L account and the Project (asset) will be showing a renewed figure and the adjustment would be carried out in the Balance Sheet.
Analysis of 20 GST Notices (including 2 Appeals) and Practise on Drafting(with recording)
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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