Disallowance u/s43B of the Incometax Act, Income Tax

[Gopalarathnam Muralidharan]

In our company, salestax, service tax, duties etc are routed through Balance sheet. But AO wants to disallow certain taxes which were beyond the stipulated date. We objected to saying that Sec43B has no application as the taxes etc are routed through Balance sheet. But AO wants to have Sec145A workings to find out taxes impact on Profit and Loss. Is it correct

Posts / Replies

[CA Rachit Agarwal]

At the time of Tax Audit, Form 3CD, Clause-12(b), we have to state the deviation and effect on Profit/Loss by the virtue of Section 145A.

Hence AO contenttion is right.

However there are guidelines which is enumerated in the "Guidance to Tax Audit" published by ICAI, in which your content could also be held right.