Tax audit- reopening

This query is : Resolved

Vishnu S (Querist)
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23 November 2013 The tax audit of one firm was completed and Audit report and Statement of accounts were already filed to IT dept. Later on it is found out that certain entries relating to one of the bank account of the firm has not been incorporated in the books of the firm and hence the balances do not matches with bank statement.

Is it possible to reopen the Tax Audit and file a revised ITR and Tax Audit report? The fact that bank balances are subject to confirmation has been added as a comment in the original audit report by the auditor. The client failed to produce balance confirmation for the above accounts at the time and could only produce the same after the completion of audit and filing of IT return.

What are the legal, professional and other consequences that can arise now?

Thanking you in advance

Nikhil Kaushik

Nikhil Kaushik (Expert)
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24 November 2013 Dear Vishnu,

Yes you can revise the tax audit report as well as the ITR. there are no consequences as long as you have detected the mistakes and corrected suo-moto.

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