The above case attracts the provisions of Sec.139(5) read with Sec.145..........
Sec.139(5) says the assessee can file a revised return if he discovers "any omission or wrong statement therein".......in the above case there is no wrong statement and it is just that the assessee is not able to reliase the adequate amount of sales.that is otherwise became due.........................
also Sec.145 says that assessee shall have to compute PGBP of business in accordance with the system of accounting" regularly employed by him."
this filters down to conclude that the assessee can't on its own wayword choose to prepare accoutns........he has to follow the same accounting method which he regularly employs............
In this regard. Accounting standards also provides that the accounting system may be changed if it presents the financial statement in better manner..................non reliasation of reciepts doesn't tarnish the picture so as to change the whole system of accounting...........
IN my view, filing a revised return by changing the accouiting system so as to decrease the profit may amount to its understatement...........pls wait for more views from this forum.........
sec. 145 states that the assessee has to prepare its accounts according to the method rgularily employed by him
since the assessee is following the mercantile basis hence he is not supposed to change its basis of accounting at the end of year only for the purpose of understating its profit
sec. 145 states that the assessee has to prepare its accounts according to the method rgularily employed by him
since the assessee is following the mercantile basis hence he is not supposed to change its basis of accounting at the end of year only for the purpose of understating its profit
Ashish and Arpit, ur ans is correct. Add relevant case law to it :
Best wishes
CA Sandeep Gupta
thanks for the case law........
CAclubindia
