Cash transaction

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Anant Bawkar (Querist)

09 November 2012 Resp. sir,

If proprietor has a trading firm and filed his audit report, balance sheet and IT return. But unfortunately missed to account for transaction with a bank account in which 25% advances received against sale of land and cash withdrawal. But actual sale of land was not occur till date. There is no Sales or purchase or cash deposit related transaction. Then what will be the tax liability and what he has to do further. And if the proprietor has another firm having HUF status in which he is Karta. This HUF firm is not covered under tax audit and it's returned is not yet filed. Then Can we show the proprietor's missing bank account in HUF firm though it is earlier shown in proprietary firm?

Regards
Anant Bawkar

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

10 November 2012 Whether in the audited accounts, the same balance of the bank account has been shown as the same, without considering the transactions , which had taken place during the previous year?
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The Bank Account can not be shown in the HUF's file.
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However, the impact of the transactions may be reflected in the Capital Account of the Prop., treating the same as of the transaction of the personal Balance Sheet. Such Personal Balance sheet, which is different from the Prop. Firm's Balance Sheet may have a mention of the left transaction.
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