Income Tax - Disallowance on account of extraordinary items written off -...

Income Tax

Disallowance on account of extraordinary items written off - It is not in dispute that the assessee had indeed written off the said abandoned project expenditure in its books during the year and had reflected the same as ‘Extra-Ordinary Items Written Off’. Since this issue does not arise on a regular basis to the assessee, we find that the assessee had rightly shown this as ‘Extra Ordinary Items’ in accordance with Accounting Standard 5 issued by ICAI in its profit and loss account as a separate line item - Claim allowed - AT

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