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Whether return can be revised requiring Audit?

CA ANANT KUMAR (B.COM(H)) (100 Points)

04 August 2010

An assesee who has filed his return u/s 44 AD (which,infact,required Audit) for assessment year 09-10,now want to revise his return u/s 44 AB,can he do so?If yes,what is the procedure and penalty?

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2 Replies

CA Kartik Sharma (CA) (55 Points)
Replied 04 August 2010

any return can be revised upto one year frm the end of relevent A.Y. provided the original return was filed on or before due date.

revised return replaces the original return.

make sure that the signing date on audit report is well within time. i.e. in case of A.Y.09-10 it should be before 30/09/09.

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Pankaj Gulati (Tax Advisor) (81 Points)
Replied 15 August 2010

Revised return can only be filed if the original return is filed by the due date (i.e. 31st July 2009 in ur case) and before the expiry of 1 year from the end of the relevant assessment year or before the completion of assessment whichever is earlier.

Let us for the time being suppose u have filed the original return by the due date and the assessment till date has not been done. Even then I don't undestand how can u now file the revised return.

Becoz in original return u have opted section 44AD which requires an assessee to show 8% NP on Gross receipts which should be under 40 lac, No books of accounts are required to be kept, all exp r deemed to be allowed etc.

Now how can u say that books of accounts were kept and audited ? this means u are either incorrect now or earlier.

this is the case of penalty for non maintainence of books of accounts of25000/- and penalty for failure to get them audited at 0.5% of TO. Not to mention 8% NP shall also be determined on which tax alongwith interest has to be paid.

In my opinion, I can't think of any legal way of filing revised return.....However if the assessee feels aggrieved by the ITOs action, he can file appeal on the point of penalty like he had no idea that his TO would cross 40 lac so he did'nt maintain books of accounts and earlier he used to file return u/s 44AD for many years, he is not much educated, ignorant of law etc. May be the appellate authorities shall give sympathatic view and only impose token penalty.