Revision of Tax Audit Report ?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 June 2011 In the FY 2008-09,one of my client was subject to tax-audit u/s 44AB.He filed the return accordingly.In the FY 2010-11,during assessment,the AO found from 26AS,an Income of Rs.5,00,000/- was not accounted for in the books of accounts related to FY 2008-09.He issued Notice U/s 148 & 147.(Income escaping assessment).My query is:
1.How it will be treated ?
2.Can a Revised audit report be issued u/s 44AB ?If yes how?
3.He has not shown escaped income of Rs.5,00,000/- even in FY 2009-10 & Filed the return.
4.VERY URGENT MATTER & need expert advice.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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28 June 2011 In what manner the amount received of Rs 448500/ has been shown in the books , even if it is not shown as income? Solution lies there only.
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Take the stand-It was the client who had not brought the income to your notice.
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We should not issue Revised Audit Report as the significance of Audit Report is going nothing to do with this matter.
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Be practical, and make ready the client to bear the consequences.

Querist : Anonymous

Querist : Anonymous (Querist)

29 June 2011 It seems u r an expert in this matter.My client is a works contractor.The gross receipt of Rs.5,00,000/- and the TDS thereof has not been accounted for in FY 2008-09 & 2009-10.It was discovered by the Officer from 26AS,hence notice was issued.In the meanwhile the party has also received refunds.As per your advice I left the whole thing on the party and the Officer.I am also not going to revise the P/L,B/s & report thereof as Tax audit can not be revised.I want to know:

1.How the officer will deal with it?
2.In which year the effect of the transaction will be reflected?
3.Is there any liability of the Auditor?

Best Regards

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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29 June 2011 Q1.How the officer will deal with it?

Reply -
In the most beneficial manner from the officer's point of view.

2.In which year the effect of the transaction will be reflected?
Reply-
Effect is being seen after the notice only.
Whether its reflection will reach to the books of accounts or the "Object" itself will lost, we can't predict it right now.
However, It can be requested to take the presumptive income @ 8% of the respective year to which the income relate and accordingly tax may be levied out of the TDS.

3.Is there any liability of the Auditor?
It is a serious matter in case the transaction of receipts have routed through books of account. If not so, then
it's ok. However I am not bound to reply
this question as you have not provided me the detail
I asked for-
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-"In what manner the amount received of448500/ has been shown in the books , even if it is not shown as income? Solution lies there only."

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