Situation 1: Expert Ltd. has depreciation amounting to 6,00,000 in its books as per accounting records and depreciation as per tax records at…

Situation 1: Expert Ltd. has depreciation amounting to 6,00,000 in its books as per accounting records and depreciation as per tax records at 15,00,000. There is adequate evidence of future profit sufficiency. Situation 2: Further, they have accrued - 8,00,000 towards GST liability for the last month of the year which is expected to be paid off by next month. As per the provisions of Section 43B of the Income Tax Act, 1961 – Any expenditure of the nature mentioned in section 43B (e.g. taxes, duty, cess, fees, etc.) accrued in the statement of profit and loss on mercantile basis will be allowed for tax purposes in subsequent years on payment basis only. Answer the following questions on the basis of above information: