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Revision of IT return of AY 2010-11 of Tax Audit Client

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Rahim (Querist)
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07 July 2011 One of Our client (Tax Audit Client) had filed his ROI u/s 139(1) for AY 2010-11.Subsequently in FY 2010-11 he came to know that he had transfered one of his propety in 2009-10 giving capital gain and which was not taken into consideration at the time of filling original ROI by mistake.Now my question is how to dealt with such situation ie. whether to show such capiatal gain in ROI of AY 2011-12 or Revise the ROI of AY 2010-11 originally filled on 30th Sept 2010 ie. u/s 139(1) if revision is made than what would be its consequensess on penalty Note : No Assessment for AY 2010-11 is bigin till date. please guide me.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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07 July 2011 1. You have to check whether the property in question has been shown in the accounts
under audit or it was held by him in his personal capacity.
2. In case it is held in personal capacity
then you can revise his return by showing the capital gains and paying taxes thereon.

3.In case it was held in the firm's balance sheet and shown as fixed asset then the question must be raised by the auditors for the source of receipts credited in the books of account. Without knowing exact position, no conclusive suggestion can be given.

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