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U/s Notice 142(2)

ajay (service) (31 Points)

10 June 2007

Notice u/s 142(2) served by assessing officer on a Partnership Firm, One of the Partner is an Directors of the Company also, from whom raw material and services has been purchased. Can Assessing officers has a rights to call for balance sheet and profit and loss account of the Company. ????

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2 Replies

CA Nikita (Chartered Accountant) (4158 Points)
Replied 10 June 2007

yes the AO can ask for B/S and P/L and can also ask for the auditors report to verify whether disclosure of the same has been make..

(Guest)

You have to see the to whom the notice is addressed ......if addressed to firm , firm can make a polite reply that they can not produce BS of other company .....but this may not be of any use becase AO can always issue notice to the director . Moreover depending on the facts of the case , production of BS may be use ful for you to discharge your burden of proving some fact