Can anybody please help me with the possible arguments in favour of assessee for appeal before CIT -
Assessee has undertstated FD interest in ROI
Sales tax return and details of sales and purchases as per PL Acc do not tally
6 Replies
Sandeep Surana
(Practicing Chartered Accountant)
(156 Points)
Replied 05 January 2012
its depend on each and every cases seperatly...case of the fact imporatant for argue. like whats business nature and whats circumstances right now and so on, so as to argue with the genuine reason.
suppose if Interest is not too big figure than take as original and
reason for diff in sales & purchase fig. is depend on Business situation.
CA Hardik Bunha
(self)
(2121 Points)
Replied 05 January 2012
ohhhhhhhhhhhoooooo
The assessee will defenately won.
income tax department have no right to compare sales tax return with p/l/ a/c. even income tax department have no right to ask why vat or sales tax not charged or paid.
C.A. Jignesh N. Mehta
(C.A.)
(1030 Points)
Replied 05 January 2012
You have two queries in CIT Appeal:
1. FD interest not offered to tax
This can be due to , received the TDS certificate after filing the return of income OR assessee follows cash basis OR income of interest was offered in subsequent years due to some reasons on record....
2. Sales Tax figures and Tally figures:
It is not necessary to match all the figures, but it is necessary to match the figures with help of reconciliation. Sales tax and VAT are covered by the section 43B, if not paid within due date of filing of return then it is necessary to disallow the VAT or Sales tax amount.
Hence it is very relevant to match all the figures of sales tax return and tally , with help of reconciliation.
I hope all of above answers your queries......
CA Hardik Bunha
(self)
(2121 Points)
Replied 06 January 2012
Mr jignesh mehta i want to know about one thing from you that
IF I UNDERSTATED(lESS fIGURES FROM ACTUALLY) PURCHASE AND SALES IN SALES TAX RETURN THEN, WHAT ARE YOU THINKING ABOUT THAT AND WHAT ABOUT YOUR 43B?
According to you A.O. should decrease GP and NP. Right.....
My Friend Income tax deparment have no right to tally figures with sales tax return.
One more instance for you a client file 6 months stament of stock into bank but when filling income tax return it will be lesser or higher. Thats hope u understand what i want to tell you.
C.A. Jignesh N. Mehta
(C.A.)
(1030 Points)
Replied 07 January 2012
Dear Hardik, i could not understand your query, can you elaborate in details with some examples...
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