Expense by director

Narinder Kumar (Student CA Final ) (32 Points)

24 May 2016  

IN PVT. LTD. CO. THERE ARE TWO DIRECTOR, ONE DIRECTOR ENGAGED IN BUSINESS OF COMPANY AND ALL EXPENSES LIKE TRAVELLING , PURCHASE ,ETC.PAID  BY CREDIT CARDIT (PERSONAL NAME) AND ALL THE INVOICES OF EXPENSE IN THE NAME OF DIRECTOR. IS IT ALLOWABLE EXPENSE UNDER INCOMETAX ACT AND WHAT IS ACCOUNTING TREATMENT IF ALLOWED?