An assessee whose son and wife are partners in partnership firm and firm account are audited every year.
A firm entered into agreement of leave and license of office with an assessee on 1-5-24
Firm paying rent from there onwards and deducting tds too but didn't started staying as it is in work in progress stage and will shift from 1-4-25 and onwards so rent paid till now instead of showing expenses will trf to assessee exp a/c shown in current assets and assessee will capitalize in his books as any expenses incurred upto assets put to use are capitalized .
So can Partnership firm can now TRF rent paid from may to march 25 to assessee exp account in current assets
And assessee will record same in his books as liabilities and capitalized the same
CAclubindia
