Advance auditing

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 March 2011
2.A power project in the construction stage raised funds for it project through a public issue and placed a part of the the funds in a fixed deposit with a nationalised bank.Interest on such F.D. for the year ended 31.3.2011 is Rs.7000000.The A.O. proposes penalty againt the company for not subjecting the Accounts to tax audit u/s44AB.

Abhishek

Abhishek (Expert)
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06 April 2011 tax audit applies from beginning of assessment year and first assessment year commences from date of set up

Check the returns etc - if company has claimed that it has set up then tax audit would be applicable otherwise no...