reena jain (CA ) (247 Points)
13 August 2009Dear Friends,
Kindly Let me know, If any Asset (Plot of Land ) has not been accounted for in the books at the time of purchase and 10 years have been passed .
1.) Can the assessee show this asset into Balance Sheet by increasing capital a/c as well as Assets a/c ?
2.) Whether this Asset can be Taxed as undisclosed investment.(10 Yrs.have passed).
3.) Is it a legal accounting transaction ?
4.) Impact of this transaction upon Tax Authorities ?
kindly reply.
regards ,
Rahul
CA. Vikas Sharma
(Chartered Acountant)
(93 Points)
Replied 18 August 2009
yes the same can be disclosed in the books......................and that asset can be taxed if sold and that transaction will be termed as legal transaction in the eyes of law...............
CAclubindia
