Latest Expert Exchange Queries

Make your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: due date for vat payment :: Central Excise rule to resale the machines to a new company :: TDS :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: ACCOUNTING STANDARDS :: VAT RATES :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: VAT Audit :: form 3cd
 
 
News Headlines »
 Income-tax (21st Amendment) Rules, 2017
 Deadline for filing income tax return nears; here are 10 common mistakes that you must avoid
 All you need to know about form 26AS
 How to file income tax return?
 7 changes that affect income tax return filing this year
 How To File Income Tax Return (ITR) Online For FY2016-17? Last Date July 31
 Last date for filing income tax return approaches: What is Form 26AS? How it can help you claim refunds
 Income Tax department to launch mobile app to make life easy for taxpayers
 6 things to remember while filing your income tax return
 Want to save on tax? Here are deductions you can use while filing ITR
 July 31 Is Last Date For Filing Tax Return. Why Form 26AS Has To Be Checked

Income-tax department gets more teeth to conduct special audit
August, 05th 2013

When DLF Commercial Projects Corporation - a partnership firm in which India's largest real estate firm, DLF, held 74% - filed its income-tax returns in September 2009, declaring a loss of 20.1 crore, the assessing officer could not understand certain transactions. One such transaction was 3,717 crore received as advances by DLF Commercial from its parent, on which it paid no interest and invested this amount in more than 100 firms.

The assessing officer ordered a 'special audit' - a relook at the company's accounts by an auditor appointed and paid for by the I-T department. DLF Commercial objected to this special audit in the Delhi High Court, and won the decision in October 2012. In recent years, several frontline companies have challenged the I-T department's special audit in court - Nokia India, Hero MotoCorpBSE 0.08 % and Sahara India are three other examples.

But the ability of corporates to resist such an oversight audit might be weakened following a widening in the scope of the law. Effective from June 1, the I-T department can order such audits on six counts, against two counts earlier (see graphic). Accounting professionals say that while this gives more teeth to the I-T department to order special audits, it also raises the spectre of harassment if these powers were used more as a rule than as an exception.

"This move is surely a weapon in hands of I-T department to gather exhaustive facts of transactions and would lead to more instances of special audit," says Himanshu Parekh, partner-global international corporate tax with KPMG. "These (six) provisions should be reviewed at the earliest by the I-T department and the government should bring in appropriate control measures so that the assessing officer cannot misuse these provisions by calling for a special audit without adequate justification."

Previously, an assessing officer could call on a special audit only on two counts: a company's accounts were complex or there was a revenue loss to the exchequer. In most cases, companies went to court, and won.

When asked why the company opposed the special audit, a DLF spokesperson replied: "Our stand has been validated through the Delhi High Court judgement." The court order shows that DLF argued that a day before the special audit was ordered, the assessing officer had written an internal note stating that DLF Commercial had clarified the "apparent complexities noticed". DLF accessed this document through a right to information (RTI) request.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Internet Marketing Website Marketing Internet Promotion Internet Marketing India Website Marketing India Internet Promotion India Internet Marketing Consultancy Website Marketing Consulta

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions