Shubham Singhania (Student CA Final ) (293 Points)
08 September 2016Sir, my question is , whether any compensation paid to employee on order of court due to accident of employee during the course of employment is allowable business expenditure or not ? Also if assesse have debited the compensation paid in P&L A/c, whether we should mention this item of expenditure in the Tax Audit report, if yes in which clause ?
Manoj BG
(Tax Professional and in Service)
(1795 Points)
Replied 08 September 2016
It should be allowed as an busines expenditure as it doesn't voilate any of section 30 to section 37 of Income Tax Act. I dont think, tax audit report requires any clause for separate disclosure of this type of transactions.
Thanks and Regards,
Manoj B. Gavali
ANKUR TAH
(Teacher Consultant and CA finalist.)
(543 Points)
Replied 08 September 2016
ANKUR TAH
(Teacher Consultant and CA finalist.)
(543 Points)
Replied 08 September 2016
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