CA Sudhir Halakhandi

The date of obtaining and furnishing of tax audit report u/s 44AB has been extended from 30th Sept. 2014 to 30th Nov. 2014 and while issuing the orders under section 119 the Central Board of Direct Taxes has created one more confusion which is related to the extension of date of ITR. Though this is not the subject matter of this write up, but we are waiting for a fresh order in this respect since the date of obtaining and submission of audit report is governed by the date of filing of ITR which is given in section 139(1) hence now they have to issue a fresh order to extend the date of filing of ITR which will automatically extend the date of furnishing of audit report. There is a concern from the legal and taxation sector in this respect but one point is clear that one cannot file his ITR without completion of audit hence this is a technical error which they have to rectify in ASAP and there is no other way left in this respect but this a big question mark on the “quality”. They have introduced the schema of the New audit report on the Income tax site today i.e. 21st. Aug.2014 and please remember that there were 10 changes in the schema in 2013 but the CBDT was not ready to extend the date even by a single day and now there is an extension of 2 Months at once, so there is a change in “Attitude” also which may be result of pressure of Representations submitted by CAs, Trade and Industries in large numbers.

Let us come to the point , this extension is not the solution of the problems which were enumerated by us in our representations submitted to the CBDT and we have specifically emphasized the problem of the assesses whose audits were completed before 25th July 2014 but not “uploaded” on the site of the Income tax department . This is general practice and sometimes a compulsion also and numbers of these audits are very large, may be in lakhs, including the Banks, insurance companies and other entities. The problem is created by “midyear” introduction of fresh formats which was not only sudden but untimely and against the promised declared policy of lawmakers “Simplification and rationalization of Taxation laws”.

The ICAI, regulatory body of chartered accountants in India , established under the Act of parliament , has also shown a concern towards these audits mentioned above and since the number is very large, the problem should be understood by the lawmakers and a final decision should have been taken after solving the problems of these audits but instead of this a simple solution is made by extending the date for 2 Months. A big question arises here why ICAI is not having the last say in audit matters and why this apex body of auditors not taken into confidence before introduction of these formats in the middle of the year.

Here it should be noted that we are talking about the audits which are completed before 25th July 2014 but “not uploaded” and since out of 180 days total allotted to complete the audits under section 44AB , there were 116 days passed up to 25th July 2014, the number the these audits is too large.

The “midyear and sudden” changes in law and introduction of fresh forms are not natural, prudent, reasonable and logical actions and these should strictly be checked forever. How they will compare the reports which are uploaded before 25th July 2014 and on or after 21st Aug 2014(the day on which new schema was introduced on IT site) because both are in different formats.

We have experienced 10 Continuous changes in the schema of TAR in 2013 so this possibility of same happenings cannot be ruled out this year also.

A simple, logical, reasonable solution is that to postpone the applicability these Formats and made them applicable for the assessment year 2015-16 to save lakhs of these assesses mentioned above from the problems and further extend the date for only one month with Old TAR to compensate the 25 days blackout of the Income Tax site.

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-CA Sudhir Halakhandi,  -CA Abhas Halakhandi

Halakhandi And Company, Chartered Accountants

“Halakhandi”, Laxmi Market, Beawar-305901(Raj)

Cell- 9828067256,  MAIL –sudhirhalakhandi@gmail.com

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Tags : form 3cd (81) ITR (547) Section 44AD (108) Sudhir Halakhandi (61) Tax Audit (239) Tax Audit Report (127)

0 responses to “Tax Audit Report – New Formats Should Be Deferred, Extension Is Not A Solution”

  1. Umesh Pancholi says:

    Sir ,
    I agree to abolish the tax audit system . it just waste of time , escape route for most of the tax payer and eye wash and also loss of the revenue The auditor just singed the balance sheet and other relevent paper for Rs 2,000/- . Is it possible for them to audit in this amount . The auditor were dishonest with themselves

  2. BGSHELLIKERI says:

    I as I said sir I do agree with u.

  3. BSKRAO says:

    Whatever suggestion ICAI (Financials) place before the Govt., it seems to be in the interest of the Govt. But in reality, it results in complicating the law & goes in the financial interest of its members ONLY. This is how ICAI (Financials)keep the Govt. in DARK ROOM.

  4. MANDEEP SINGH says:

    why we are wasting our energy to extend dates & forms for audit reports. such kinds demands also wastes time of CBDT & Government machinery. Why we are not demanding to make easy accounting system, maximum voluntarily compliance from assessee in easy accounting system. As per information provided by department 90 plus cases are covered under tax audit u/s 44ab in which department made more than 2 lac addition. I am in confusion regarding which quality we are talking. Audit provisions till today present in income tax without evaluating its out put since 1984. Why we are not makes jointly efforts in favor to increase genuine tax base for country, to minimize unnecessary expenses of these reports & wastes of time of indian assessees as well as CBDT. For this purpose these reports should be omitted from income tax & other tax acts.

  5. Manash Kr.Ghosh says:

    Dear Sir,
    I am very well agree with you. Please have a request to the Lawmakers to think once againg in this feild and it may be applicable from next Assessment year 2015-2016.

  6. Karan Chandwani says:

    Very well said Sudhir sir.

    Thanks alot for sharing your views and comments.

  7. danish says:

    100% agree with you sir it is the quality issue and legally confusing notification.

  8. Gyati Gupta says:

    I completely agree with the above said points.
    We are nowhere benefitted from this extension.
    Due date of filing ITR should also be extended.

  9. manish parekh says:

    Very True. It all boils down to the ” attitude” which you have mentioned, but in different context. As I had mentioned in my earlier communication, such an attitude is the result of the powers these guys has been enjoying which were originally framed for the British Officers to supress any kind of uprising against them. This was done create a fear in the minds of people from harassment angle which they fall prey to. The situation continues today. Professionals & assessees stand with folded hands in front them just to avoid the harassment possible due to the power bestowed.

    Secondly these guys have no ” accountability ” issue. They are not be questioned for any wrong doing, which is again possible with the enormous powers they enjoy. How else can you explain the sudden changes “thrown” at general people without application of mind !!!!!

  10. Niraj says:

    So many bodies set up by the ICAI who are least bothered to address the members concern

  11. Manohar CH L, Tax Consultant says:

    Well said Sir, i do agree 100% with you.

  12. CA SUDHIR HALAKHANDI says:

    Request to all the members- The fate of audits completed before 25/07/2014 is not decided and there problems are not solved . Please try once again to convince the Lawmakers to rethink about this.

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