20 March 2015
I am the authorised representative of my assessee to appear scrutiny assessment for the AY 2012-13. The business is to Manufacture of Machineries. There was a expenses of Canvassing Rs.14.00 lakhs and After Sales and Service of Rs.19.00 lakhs. The AO asked explanation of these expenses and a detailed explanation given if these expenses are not done the company will not run and After Sales and Service expenses done is to stand in the market. Orders can be procured only by spending canvassing expenses and Training in Operation and production given after sales of Machinery. The AO has accepted this expenses. There was a cash credit of Rs.4.50 lakhs in the books of accounts. I accepted even the the cash credit transaction was genuine and bonofide and agreed pay the tax as the AO has also accepted the said expenses. Now before preparing Assessment Order the AO has called again and the said expenses was not accepted and disallowed the expenses. (i) Can I withdraw the cash credit accepted by me. (ii) Can I appeal the expenses disallowed and cash credit by AO and what is case law.
20 March 2015
it is your prerogative pls, as he had his prerogative of reassessing differently that is called natural justice sir, as none knows what is perfect right!
20 March 2015
every one can retract as every thing undergoes changed perception as nothing called sacrosanct as such. All that is needed is convincibility is the most vital factor in any thing.. that way came the accounting principles please, else there is no need of any CA at all!
20 March 2015
scrutiny itself is accountability so AO is also accountable equally like you friend! AO is not great God but just as good a mortal like you!
CAclubindia
