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Prior Period Income tax


Prathyusha Varma (ArticleShip)     13 April 2021

Prathyusha Varma
ArticleShip 
 3 likes  107 points

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Does Prior Period Expense eligible for income tax deduction?

Thanks,
Sourav

Sourav (Student)     13 April 2021

Sourav
Student 
 505 likes  8286 points

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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.

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