Does Prior Period Expense eligible for income tax deduction?
Thanks,
4 Replies
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 13 April 2021
Priror period expenses allowed as deduction and can claim expenditure at the year of founded the mistake etc.... it is allowable. In case at the time of scrutiny assessment if the AO doesn't satisfied the facts and reasons of mistake and it seems make with intention to divert or decrease income tax payable then he may disallow it as un-explained expenditure or may do assessment after considering such expenses for the year for which they actually related.
Prathyusha Varma
(ArticleShip)
(393 Points)
Replied 13 April 2021
Even I read this, but how auditor accepts this forget abt AO
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 13 April 2021
Prior period expenses is eligible for deduction but AO after making assessment may disallow if claim is not in proper provision
Ankit Neema
(2742 Points)
Replied 14 April 2021
You have to Give Proper explanation to auditor about the expenditure, he has to accept but he has the power to report such expenditures in his report .
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