Question ID :
40456
Deduction of Indirect Taxes Paid
A company has wrongly availed Input Tax Credit under erstwhile CENVAT Rules in 2015-16. During GST Audit in current year, this was found out and the company paid the wrong credit availed in earlier years as above now, i.e. in FY 2019-20. The same has been expensed off. Is it an allowable expenses under Income Tax Act? Please provide any case laws, if available.
Posted by
balasubramanian
on
Nov 06, 2019
Filed Under
DIRECT TAXES
Excess claim of credit means increase in profit. Reclaiming the same as expenses doesn't suffice the purpose. Better you should adjusted in PL appropriation account.
Posted by
SURAJ KUMAR CHOUDHURY on
Nov 09, 2019