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Huge mistake in last year balance sheet

Rahul jain (LEARNING & TEACHING) (435 Points)

15 June 2016

Dear Scholers plz help me..its very critical situation..

in Last yr the amount in balance sheet in sundry debtor and creditor was wrongly taken...the amount in annexure attached and the amount in balance sheet is not matched..the amount diffence is approx 40lac up.and audit report is signed and uploaded...there is no intention of tax evasion..

..till today no querry is came from department but in future it will surely to came...

now plz suggest me what to do...and how to convience to department if any querry raised?

and how much penalty to pay if department not convience....???

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9 Replies

Raj Kumar (--) (98 Points)
Replied 15 June 2016

its a very big mistake. One thing you may undertake is that prepare new schedule of debtor & creditor. if any query raised then you can show new schedule in place of

Raj Kumar (--) (98 Points)
Replied 15 June 2016

its a very big mistake. One thing you may undertake is that prepare new schedule of debtor & creditor. if any query raised then you can show new schedule in place of erstwhile.

CMA Ashutosh Kumar Gupta (Unit Financial Controller) (1015 Points)
Replied 15 June 2016

A rectification request under section 154(1) is allowed by the Income Tax Department for correcting mistakes when there is an apparent mistake in your Income Tax Return.

6 things you must know about filing a rectification under section 154(1) –

Errors that can be rectified under section 154(1) – An error of fact, an arithmetic mistake, or a small clerical error or error due to overlooking compulsory provisions of law. Some examples are – A mismatch in tax credit, Advance Tax mismatch, gender mentioned incorrectly, or additional details not submitted for capital gains at the time of filing return.
A rectification can be filed by a Tax Payer or an Income Tax Authority can on its own rectify a mistake which is apparent.
If upon rectifying a ‘mistake’ there is a change in Income – a rectification should not be filed. In this case one must file a Revised Income Tax Return. In the rectification request no new deductions or exemptions are allowed to be claimed.
A rectification request can be filed for Returns which are already processed in CPC, Bangalore.
When the Income Tax Return was filed online – only Online Rectification is allowed.
Do not use this rectification request for changing bank account or address details of your Income Tax Return.
A rectification request under section 154(1) is allowed by the Income Tax Department for correcting mistakes when there is an apparent mistake in your Income Tax Return.

Rahul jain (LEARNING & TEACHING) (435 Points)
Replied 16 June 2016

Thanks to all...

and dear Ashutosh ji..

but my query is still unsolved..i want to know in how much time period the revise return sholud be filled because it still passed more than 8 months from the original return filled...and should i wait for income tax scrutiny or filled the revise return immediatly..

mohammad rasool baig (Management Consultant) (1026 Points)
Replied 16 June 2016

Dear Rahul

First of all, don't worry about the mistake because it will happen due to manual interventions & every time department will not consider the mistakes as tax evasion.

If you have filled your return within the due date of 139(1) that means before sept 30. Then you can revise your return before expiry of one year from the end of AY or completion of assessment whichever is earlier.

So you can file the return before expiry of one year from relevant AY.

Don't wait for scrutiny... Please revise the income tax return & your problem will be rectified....

CMA Ashutosh Kumar Gupta (Unit Financial Controller) (1015 Points)
Replied 16 June 2016

As per section 139(5), the revised return can be filed before the expiry of one year from the end of the relevant assessment year or before the completion of assessment, whichever is earlier.

So please file immediately and don't waste your time.

However, if a person deliberately files a false return he will be liable to be imprisoned under section 277 and the offence will not be condoned by filing a revised return.

Therefore, burden of proof onus remains with the assessee.-Please do take care of the same.

Rahul jain (LEARNING & TEACHING) (435 Points)
Replied 16 June 2016

i have proof that the mistake had done was not for tax evasion..it is due to mistake of article assistant...the annexure so attached with financial statement are it self proof...due to in hurry the amount was wrogly copied to balance sheet...

can dis justification is enough to department???