The high time has come to check as to whether SUCH BOOKS OF ACCOUNTS ARE MAINTAINED OR NOT? Even in TAX AUDIT cases in most of the cases NO BOOKS OF ACCOUNTS are maintained and statement of accounts are prepared merely by editing the previous year’s excel work sheet. This is because the INCOME-TAX DEPARTMENT never asks for production of books. So the provisions sections 269 SS , 269TT, 40(A)(3) etc could not not be checked and assessments are done on the basis of the SELF DECLARATION by the assessees. SOLUTION: THE DEPARTMENT SHOULD create a new PORTAL called as ‘ACCOUNTS PORTAL’. The Tally pack must be uploaded in the said PORTAL and the TRANSACTION ID should be entered in the RETURN FILING PORTAL.. So that It can be verified as to whether such book are maintained or not? The same may verified by Department.
The high time has come to check as to whether SUCH BOOKS OF ACCOUNTS ARE MAINTAINED OR NOT? Even in TAX AUDIT cases in most of the cases NO BOOKS OF ACCOUNTS are maintained and statement of accounts are prepared merely by editing the previous year’s excel work sheet. This is because the INCOME-TAX DEPARTMENT never asks for production of books. So the provisions sections 269 SS , 269TT, 40(A)(3) etc could not not be checked and assessments are done on the basis of the SELF DECLARATION by the assessees. SOLUTION: THE DEPARTMENT SHOULD create a new PORTAL called as ‘ACCOUNTS PORTAL’. The Tally pack must be uploaded in the said PORTAL and the TRANSACTION ID should be entered in the RETURN FILING PORTAL.. So that It can be verified as to whether such book are maintained or not? The same may verified by Department.
About the Author: Doing profession for the past 51 years in INCOME-TAX line. Age 70 years. address 13/82 Second Street, Sathyamurthi nagar, Thiruvotriyur, Chennai 19 mobile no. 9382789630 E mail jritconsult1970@gmail.com
Pdf file of article: Not Available
Posted on: May 16th, 2021
DEAR JYOTHI RAMALINGAM,
WITH REFERENCE TO YOUR ABOVE ARTICLE IT IS SUBMITTED THAT YOUR OBSERVATION/SUGGESTION IS BASED ON THE LAPSES COMMITTED BY CERTAIN ASSESSEES AND AUDITORS. SUCH A SUGGESTION TO UPLOAD THE BOOKS OF ACCOUNT ON A DESIGINATED PROTAL WILL CREATE HARDSHIP FOR MAJORITY OF THE ASSESSEES. IF THE ASSESSEE IS MAINTAINING THE BOOKS MANUALLY, HOW HE CAN UPLOAD THE BOOKS IN TALLY FORMAT. IT WILL ALSO PUT EXTRA BURDEN ON THE ASSESSEES AS WELL THE PROFESSIONALS. ALREADY THE NUMBER OF AMENDMENTS MADE IN THE RECENT PAST HAS INCREASED THE COMPLIANCE BURDEN. SUCH A SUGGESTION IF IMPLEMENTED WILL CREATE FURTHER HARDSHIP. WE SHOULD THING TWICE BEFOR GIVING SUCH SUGGESTIONS.
YOUR’S SINCERELY
K.K. SINGLA (ADVOCATE)
Dear Sir,
I am really shocked to read this article which goes on to mention:
Even in TAX AUDIT cases in most of the cases NO BOOKS OF ACCOUNTS
are maintained
It appears that article has been written without understanding the
nitty-gritty of whole audit process. If author has such observation
for a particular CA, then he can make complaint with ICAI or department,
but making a suggestion of uploading the books itself while filing the
return is not at all feasible and fruitful.
Author should rather think over for the cases, where turnover is below 10 Crore
and out of tax audit compliance. How would the Govt. ensure the compliance
of various provisions by such class of assessee ?
With warm regards to author who is a senior professional with rich expereince.
Despite a positive suggestion there are various practical difficulty if same implemented in the manner in which it suggested:
– In case at applied for all assessee, it require substantial storage space as well as uploading of data will be very difficulty. In case of assessee having subtential number of records, it is not practical (neither from Department view nor from assessee view) to upload entire books of account.
– Present System failed in case substantial number of audit reports along with financial got uploaded, how system proceed without failure for entire books of accounts.
– In case of various assessee there are multiple set of books of records considering Branch or considering different business. Assessee level financial prepared combining all accounting records. In such case multiple set require to be uploaded.
JOTHI RAMALINGAM is extremely right, it can be done in another way sir, at the time of uploading of audit report 3cb and 3cd & PL & BLST, the portal should ask whether your cash books contains how much page, so if assessee say page 1 to 1111 randomly the portl will ask give page no-59 and 1050 only thats enough to department and govt to understand what is happening in India. It will creat havoc employment in and around 30,00,000 employment in accounts sector only.
That is what you expect from an advocate all indians other thanbusinessmen are honest put cctv in entire it dept advocates offices judges residence and make them public what is wrong our irs advocates judges can finance 20 percent oftotal budgets babus politicians judges advocates are having the maximum black money put them under round the clock survillence and compulsory raids once in a year by social groups including advocates and judges india will be a different country
It’s an unacceptable suggestion. It will not only create unnecessary harassment to the tax payer but also impracticable. Various assessees maintain books of accounts on different software and in different formats. Some also maintained manual books of accounts. You can not compel anyone to submit the books in tally format. CA gautam in above remark rightly mentioned that it requires huge storage at government level. In a country where departmental portal crashes only in filing of returns without any attachment how can we expect to upload huge files on portal. Every assessee and tax practitioners know that we are presently facing various difficulties in uploading the documents during faceless assessment of very few assessee.
Dear Sri Jyoti Ramalingam, At the outset I am glad that you have thought loud about the shortcomings in tax return filings by various assessee’s with the help of either so called smart tax consultants or Tax practitioners and few take it easy CAs. Neverthless, uploading the accounts in any web portal by a business entity (let me restrict only to business entity alone now) is nothing but creation of infrastructure which may be costlier to the department in the process of administration. Moreover, the department may not achieve the desired results as you feel here. The assessee as well smart consultants or CAs will never allow any audit trail to show the mischief at all. They will orchestrate the whole show separately and will upload after due audit verification in their own way. So why think so much sir. Moreover uploading the data is another herculean task and cannot be imagined.