Sir, could anyone please analyze the following case and let me know how it should be treated.
1.ABC Co. during AY 2010-11 has booked certain expenditure under "business promotion", it was issued notice u/s 142(1), where in the business expenditure.. say Rs 100 was added back to income. This business promotion exp was booked because we paid it to XYZ co. for business promotion. We are paying tax on that rs 100 now.
2. ABC wishes to get back that Rs 100 from XYZ co. because they have not spent that amount, hence XYZ co. is refunding that Rs 100 in the AY 2013-14
Query: Do we need to pay tax again on that Rs 100 which is being refunded this year. ? can we claim relief on that exact same amount being refunded? if so under what section..?.. if not.. why cant we ? wont it amount to double taxation ?
CAclubindia
