Tax audit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 May 2014 I was partner with one of senior Ca under whom i did my articleship, during last september while doing Tax audits he asked me to do the tax audit of one of his client. since there were few discrepancies regarding service tax so i prepared the balance sheet nad profit & loss a/c but refused to sigh and file the report.

In due course the ca filed the return of assessee with figures of bs and pl prepared by me and quoting my name as tax auditor.
Now he is saying since your name is mentioned in the ITR so u r liable to sign the report.

Can any one tell me what can be the consequences of the same in near future.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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07 May 2014 not at all. mentioning the name in the itr cannot create any liability against you. unless and until you upload the tax audit report and the same is approved by the client, no liability can arise.

in the meanwhile, you may write a letter to the client's AO stating the facts and disassociate yourself from the client's tax issues.

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Querist : Anonymous

Querist : Anonymous (Querist)

09 May 2014 Sir
Can you please tell me whether in future if the assessee gets notice from IT department for not getting tax audit for AY 2013-14 then can assessee can claim that audit hasnt been done on the part of Ca and since my name is mentioned in his ITR so its was my liability to carry on audit ?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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09 May 2014 i dont think so. not getting the audit done is the client's liability. putting anyone's name in your tax return cannot create third party liabilities.

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