Dear Sir. While adopting Ind AS, the company provided for Expected credit loss by adjusting from the retained earnings in the opening balance sheet as at 1st April, 2016. No claim for write off was claimed under Income Tax in the Income Tax Return. Now, in the current financial year, the company has recovered the entire amount from the company under the settlement arrived at with the company to whom advance was made. Now, if we show the amount recovered as Other Comprehensive Income , I feel that then neither it need to be first shown as income and then…
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Taxability of recoverability of Expected Credit Loss