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Query !!when last year's bal sheet figures totally unknown!!

PALASH (Nothing) (2000 Points)

28 October 2013

Query ????? & Pleaseeeee response as early as possible ............

My client is a Commission Agent of LICI ( Chairman Club Member ) earned of rs.

6,62,650/= ( approx ) during F.y 2012-2013 as commission income.

There is no password problem , the actual problem is that the Previous IT Practitioner( i.e, f.y 2011-2012 ) of my present client totally silent regarding Last Year's ( i.e, f.y 2011-2012 ) PROFIT & LOSS A/C & BALANCE SHEET .

But, now this f.y 2012-2013, i have to prepare P&L AND Balance Sheet as income more than of rs 6 lacs.

What should I do ????????

Pleaseeeee response as early as possible ...

Thanks...

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10 Replies

CA Revati Galgali (B.com ACA DipIFR(ACCA) CS(Exe)) (1049 Points)
Replied 28 October 2013

Cant you download the previous year ITR, It will give you a rough idea of the balance sheet

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Ganeshbabu K (Audit and Tax Advisory) (48564 Points)
Replied 28 October 2013

yes, you can download previous year ITR and try to construct this year balancesheet

Nikhil Kaushik (Fellow CA) (85758 Points)
Replied 29 October 2013

the last year ITR will give absolutely clear idea of the balancesheet. Nevertheless, while you take time to re-construct the balancesheet, make sure that the tax liability for the current year is paid off as soon as possible. No point in increasing the tax liability.

VIKASH KUMAR JAIN (Audit Executive) (711 Points)
Replied 29 October 2013

Agree with above advice.....

Shivshankar (a c.a student) (229 Points)
Replied 29 October 2013

You just download last year itr from income tax site you will get everything

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PALASH (Nothing) (2000 Points)
Replied 29 October 2013

Friends,

Yes, i know that, but the matter is that i need actual balance sheet figures rather than consolidated figures in last year's ITR FORM, BECAUSE, IN LAST YEAR BS , THERE MAY BE VARIOUS KIND OF ASSETS ITEMS, VARIOUS KINDS OF LIABILITIES ITEMS UNDER SECURED LOAN, UNSECURED LOAN, CURRENT LIABILITIES, FIXED ASSETS, INVESTMENTS.

SO, THAT'S WHY , I NEED LAST YEAR BS, OTHERWISE, THERE MAY BE A PROBABILITY OF SCRUTINY BECAUSE OF MISMATCH OF FIGURES BETWEEN 2 YEARS.

Thanks..

CA Revati Galgali (B.com ACA DipIFR(ACCA) CS(Exe)) (1049 Points)
Replied 29 October 2013

Weren't the books of accounts prepared ..

Nikhil Kaushik (Fellow CA) (85758 Points)
Replied 29 October 2013

he is earning 6 lakhs. You need not worry that much. Give your best effort to reconstruct the last year's balancesheet. rest adjust the current year to reflect the true picture as on 31 March 2013. that is more than sufficient.

Also, check whether last year was scrutinized or just 143(1) was issued by the CPC. In case it was only scrutinized by CPC, then no worries. If it was scrutinized, the why not go to tax office and get some peon there to give u a copy of the last year's documents!!

U.Rakesh kumar (audit incharge) (36 Points)
Replied 29 October 2013

First you understand the last year figures with his return and prepare for the current year as per your methodology. Even in lastyear also might have shown some true figures. And make necessary adjustments in current year.

CA Rakesh T (Chartered Accountant) (590 Points)
Replied 29 October 2013

1) Unfortunately, there is no other way, but to use last year ITR as been suggested by everybody and the peon thing is a good idea if there was a scrutiny.

2) 6 laks is too less of an income for you to worry too much about. Atleast, you can check with the previous IT practioner , whether he prepared the BS ( I am not sure , when you say, he is totally silent ?)

3) Considering your client is a commission agent of a Club, the business should not be a complicated one and the nature of the business suggests that the asset base should not be too big.Understanding the nature of the business with your client and referring it with last year ITR ( even consolidated one) , you will be able to reach a very reasonable , if not accurate conclusion.

This is a very common occurance in many cases and you should let you client know that you will do your best with whatever information is available with you.

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