Regrouping in audited financials is not permitted after signing of accounts: HC

Brief of the Case Delhi High Court held In the case of CIT vs. Morgan Securities & Credits Pvt. Ltd. that any changes in the audited financials like for e.g., the ‘regrouping’ of shares in the present case, if at all permissible, has to be preceded by a legally acceptable procedure adopted by the Assessee, and in any event prior to the finalization and signing of the audited balance sheet for a particular financial year. Facts of the Case Assessee is a private limited company engaged in the business of trading and finance. For the AY 2005-06, the Assessee filed its return of i...