18 October 2022
Tax audit report for AY 2021.22 was submitted in Feb 2022. The provision of Rs. 7 lakhs was made for leave encashment as on 31.3.2021. In the said report the leave encashment Rs. 50000 paid between April 21 to Aug 21 was shown in clause 26 B (a) of 3CD under subclause a – “as paid on or before the due date for furnishing the return of income of the previous year under section 139(1)”. However while filing the return of income in Feb 22, the leave encashment Rs. 400000 paid in Sep 21 was also claimed u/s 43B on payment basis ( the due date of filing of return of income was extended for AY 21.22). Now this additional claim u/s 43B is disallowed while processing the return of income u/s 143(1) on the basis of mismatch between audit report and return of income. Can I revise the audit report to add 400000 in clause 26 B (a) of 3CD. I am doughtful because the wording in rule 6G clause 3 - is " The report of audit furnished under this rule may be revised by the person by getting revised report of audit from an accountant, duly signed and verified by such accountant, and furnish it before the end of the relevant assessment year for which the report pertains, if there is payment by such person after furnishing of report under sub-rule (1) and (2) which necessitates recalculation of disallowance under section 40 or section 43B.]"
Or alternatively will it be better to accept and pay the demand of tax made on the addition of mismatch of Rs. 400000 and claim it for AY 22.23. Will there be a risk of 270A?
CAclubindia
