Partnership firm is dissolved on 30/09/2016. All asset have sold and capital account of partners are repaid. is there any requirement to disclose about dissolution of firm in ITR of firm?
CA Rupal Patel (CA) (48 Points)
09 June 2017Partnership firm is dissolved on 30/09/2016. All asset have sold and capital account of partners are repaid. is there any requirement to disclose about dissolution of firm in ITR of firm?
SUPRIYA
(PRACTICE)
(853 Points)
Replied 09 June 2017
As per my opinion if the firm is covered under audit the fact is specifically disclosed in policies forming part of financial statements and form 3CD clause change in accounting method as compared to sec 145 of act.
However the ITR only ask for whether there is change in accounting method. As per my opinion this option should be selected Yes in case of disolution of firm. Even inventory valuation will change to NRV in such case so that can also be reported.
CA Rupal Patel
(CA)
(48 Points)
Replied 09 June 2017
Firm is not audited. No stock exist and no balance sheet have been prepared as all assets were sold out and amount distributed to to partner. So software displayed query as "Income offer under the head profit and gain from business and profession but not filled balance sheet. Notice may be issued by income tax department u/s 139(9) for defective return".
CA Rupal Patel
(CA)
(48 Points)
Replied 09 June 2017
Firm is not audited. No stock exist and no balance sheet have been prepared as all assets were sold out and amount distributed to to partner. So software displayed query as "Income offer under the head profit and gain from business and profession but not filled balance sheet. Notice may be issued by income tax department u/s 139(9) for defective return".
SUPRIYA
(PRACTICE)
(853 Points)
Replied 09 June 2017
Ms Rupal Patel
just post a reply to your notice u/s 139(9) by disagreeing the defect and in remark column just enter the fact of dissolution and sale of all assets there.
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