08 October 2012
As per IT return and Audit report for the F.Y. 2010-11 the company have purchased Office Equipment for Rs.4,75,338/- on 31-03-2011. In the next F.Y.2011-12, they sold this Office Equipment for Rs 4,75,338/- on 14-05-2011 . However they have taken this sale of Fixed Asset into Revenue Account of the F.Y. 2011-12. Even the Fixed Asset balance is not reduced by that amount. Because of this they have paid more tax for the F.Y.2011-12.
Following is the Computation:
1) Short Term Capital Gain(STCG) - Nil ( Rs.4,75,338- Rs.4,75,338).No depreciation in the year of sale while computing STCG.Even no Indexation for STCG.
2) As per me Refund we can claim:
Sales Amount - Rs .4,75,338.00 Tax @30.9% - Rs.(1,46,879.00) Depreciation they already claimed for the whole year- Rs.(71,300.00)
They will claim in P&L for 44 days. - Rs. 8,595.00 ------------------ Refund Amount Rs.2,65,754/-
They can file revise return,as the last date of revised return is 31-03-2014 for the A.Y.2012-13.
But some practicing CA's advice not to file revised return as it will increase chance of scrutiny. And the orgnasiation is not interested for scrutiny assessment.
08 October 2012
Before revising the return for AY 2012-13, consult your client and have a mutual discussion in respect of consequences of revised filing like revised books of accounts for rectification of mistake, revised audit report and future impact by way of scrutiny etc.
U can revise the return by e-filing provided if u filed original return thro E-filing and ready to face future consequences.
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