Disallowing the expenses on the reasoning that corresponding ...

Income Tax

November 16, 2021

Disallowing the expenses on the reasoning that corresponding income was not offered to tax - matching principles of the accounting treatment - part of the activity of the project which has been completed after incurring such expenses, the same should be classified as work-in progress and the same should not be claimed as deduction in pursuance to the principles of matching concept. - However, the assessee should be allowed deduction on the enhanced income on account of the disallowance of the expenses as discussed above. - AT

View Source

← Previous Next →

Disallowing the expenses on the reasoning that corresponding ...

Income Tax

November 16, 2021

You may also like:

Annual Maintenance Contracts - following Principle of matching concept of income and expenses, assessee was justified in not recognizing revenue for the unexpired period...

Treatment of expenditure and revenue during Construction period - The assessee has rightly apportioned the expenses depending upon the nature and purpose of expenses...

Reversal of profits declared in earlier years on account of estimated loss expected - valuation of work in progress (WIP) - The matching principle requires recording...

The tribunal allowed several of the assessee's appeals, directing adjustments in tax computations and granting deductions previously disallowed. It dismissed some...

Disallowances of interest and capitalizing in inventory of work in progress - matching concept - it is an admitted position that the assessee has not offered revenue...

Current Repairs - ‘Nature & Treatment’ of expense

Receipts allocated towards Warranty period - Revenue cost matching principle - there is no requirement to disturb the methodology adopted by the assessee in accounting...

Disallowance of prior period expenditure - Mercantile system - Matching principles of accounting - The assessee had claimed deduction for such expenses, citing a...

Disallowance of travelling expenses - AO while disallowing the expenses has noted that the expenses were incurred on account of trip by cruise ship by director and his...

Prior period expenditure cannot be disallowed simply by observing that it is not ascertainable whether this expenditure was incurred for earning a particular receipts...

Quick Updates: