My company's Statutory Audit was carried out based on the Bank Transactions and the same was signed and filed with the I Tax and RoC.
There was some property that was bought jointly by the Director and the Company out of the funds paid into the account of the company by the Director which in turn was paid to the Seller of the Property from the Company's Bank Account. This was done for convenience and ease of payment. While the Registered Sale Deed was executed with name of (1) the Director (in Individual and Personal Capacity) and (2) the Company itself thro the Director as Auth Signatory.
The Statutory Auditor was not provided the copy of the Sale Deed by which the property was purchased jointly and so based on the Bank Statements, the entire amount paid by the Director was shown as loan from the Director to the Company and the entire Property was shown in the books of the Company alone instead of 50% Director (in Individual and Personal Capacity) and 50% in the Company's name.
We want to rectify this position by revising the Stat. Audit Report and thereafter file the revised Income Tax Returns for both the Company and the Personal Income Tax return of the Director.
Please Advice.
Thanks.
CAclubindia
