22 September 2011
Dear Experts As per Sec 43B of IT Act, the Specified Expenses will be allowed as deduction upon payment only and due date for same is Due date of Filing return of Income U/s 139(1)
My Question what if the assessee filed the return Before due date mentioned under 139(1), means he has to deposit those specified amounts before he files the Return or he can deposit even after filing the Return but before Due date U/s 139(1)
What is duty of tax auditor, For Example he has done the audit in the month of , say, May itself, he found that certain payments which were due attracts Sec 43B and the assessee Promised that he will pay the amount before due date mentioned in act. Now does the auditor allow the same or he has include in his report
Another Question does the Tax auditor responsible for Tax Calculation, or he just required to report what are allowable and what are dis allowable exp. As it has link to my above question
22 September 2011
The word used in the act is "before the due date of filling the return of income u/s 139(1)(a)", so it means the due date mentioned u/s 139(1)(a)and not the actual return date.
According to my view you can put a note in your audit report mentioning the fact that the assesse filled the ROI before the due date sp. u/s 139(1)(a)and .......exp.not paid till the Dt. of Audit which is before the due dt. sp. u/s 139(1)(a).
Regarding your 2nd query i am of view that you can allow the deduction in IT return presuming that the asseessee will pay the same before due date.
I suggest better to ask assessee to pay that amount before the due date of filling the ITR.
22 September 2011
Even in Audit Report Form 3CD, it is mentioned like this
(i) In respect of any sum referred to in clause (a), (b), (c),(d), (e) or (f) of section 43B, the liability for which :— (A) pre-existed on the first day of the previous year but was not allowed in the assessment of any preceding previous year and was (a) paid during the previous year; (b) not paid during the previous year.
(B) was incurred in the previous year and was (a) paid on or before the due date for furnishing the return of income of the previous year under section 139(1); (b) not paid on or before the aforesaid date.
From the above how come an auditor, make sure whether it is paid or not if he did the audit before due date itself
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