21 February 2017
In sec. 142(1) intimation it is mentioned that there is "mismatch in amount paid to related persons u/s 40(2)(b) reported in audit report and ITR".
What is the meaning for that ?
section mentioned is 40 (2) (b) not 40a(2)(b) ?
Also where we will mention such amount paid to related parties in ITR ?
21 February 2017
Section has been quoted wrongly but the section is 40A(2)(b) only. In one of our scrutiny cases same query was asked. We gave reply that there is no mismatch since disallowance if any u/s 40A(2)(b) is to made only by the assessing officer and same cannot be reported either in audit report or in ITR. In audit report auditor has to report only related party transaction which falls u/s 40A(2)(b) for reporting purpose only and there is no column in ITR to show related party transactions. Moreover the same is not subject to any disallowance either on the part of the return filer or on the part of the auditor. The reply was accepted.
21 February 2017
Section has been quoted wrongly but the section is 40A(2)(b) only. In one of our scrutiny cases same query was asked. We gave reply that there is no mismatch since disallowance if any u/s 40A(2)(b) is to made only by the assessing officer and same cannot be reported either in audit report or in ITR. In audit report auditor has to report only related party transaction which falls u/s 40A(2)(b) for reporting purpose only and there is no column in ITR to show related party transactions. Moreover the same is not subject to any disallowance either on the part of the return filer or on the part of the auditor. The reply was accepted.
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