TAX AUDIT

This query is : Resolved

Shaju (Querist)
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05 March 2009 Sir,
A company appointed the statutory auditor for the financial year 2007-08.The auditor filed the ITR 4 within the duedate but no tax audit report has been given to company.The auditor resigned from the post .The AO called for scrutiny of accounts for the same year.
Can the ITR 4 could be revised?
Regards
Shaju

CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)
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05 March 2009 First of all, filing of ITR is not the duty of auditor. Secondly, you can file revised ITR if it is within the time limits of Section 139(5), which is relating to Revised return. Third, the revised return, because filed after the reciept of notice of assessment proceedings, should not disclosed any income which was not shown earlier, otherwise AO may levy penalty for concealment of incomes (it is a decided case law)

CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)
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05 March 2009 Another point is, if the tax audit report was not submitted earlier, then it means that informations related to tax audit given in ITR form itself were not filled. Is it so? If yes, and you are unable to produce the tax audit report in assessment proceedings than it may lead to penalty for violation of section 44AB also. Please be careful in this case and take proper consultancy from some professional.

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CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
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05 March 2009 But Tarun Sir revised return cannot be filed after the initation of assessment proceedings.

C A GROUP COACHING

C A GROUP COACHING (Expert)
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06 March 2009 CHECK THE ITR COVER PAGE THE AUDITOR MUST HAVE MENTIONED HIS NAME & MEM NO IN THE COLOUMN REQUIRING THE TAX AUDITORS DETAILS. IF YES THAN THE AUDITOR WILL LEGALLY BECOME BOUND TO ACCEPT THE TAX AUDIT DONE BY HIM BUT IF THE DETAILS ARE NOT MENTIONED THAN YOU ARE IN A PROBLEM. ITAX DEPT WILL EVEN LEVY PENALTY FOR TAX AUDIT WHICH IS 0.5% OF T/O OF RS 1 LKH WHICHEVER IS LOWER

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CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)
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06 March 2009 Dear Nitin, It is possible to revise the ITR even after intiation of Assessment Proceedings, if it is within the time limits as given in 139(4). It is well established. For reference you can refer the book of Mr.Girish Ahuja Sir. This point is given with a headline in his book saperately.