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Urgent Help 1915

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Sanjeev raj Gupta

25 Points Posted on 14 April 2023

There are two parties A and B.

B was doing his own accounting as well as A's accounting.

By fraud, B has stolen money from A's bank, and in A's return, he has shown that B has taken a loan from A and was Accruing interest to A's retu as well as depositing TDS. He has filed a return of A for FY 2020-21 and 2021-22.

1. Now when A came to know about this, he want to correct his accounting and IT return in FY 2022-23.?

2. Also, tell us whether the previous return can be corrected or not by filing an updated return. ?

3. Can this be complained to Income tax as B has done fraud and not paying the money back ?

Replies (2)

Quick Summary

This discussion addresses a situation where party B has committed fraud by misappropriating funds from party A's bank account and manipulating A's accounting and tax returns. The advice provided confirms that A can rectify their accounting records in the current financial year by reversing fraudulent entries. It also clarifies that A can file an updated tax return to correct previous filings, especially if it increases tax liability. Furthermore, the guidance suggests filing an FIR with the police and reporting the fraud to the Income Tax department.

Somesh Chandak

32 Points Posted on 15 April 2023

1 yee he can correct the return
2 yes he can file an updated return as this will increase his tax liability (int exp claimed earlier in the return )
3 file an FIR in any nearby police station and you can raise this case to the income tax officer also
For more information please contact me on somesh @ sschandak.com