We had done an audit for the A/y 2014-15, showing Commission income in the Profit & Loss A/c amount to Rs. 650000/- after we finalise our Audit and upload it online and return was also filed by the client showing the same commission income, the company paying commission, credit an additional commission amount to Rs. 400000/- and the same is receivable as on 31.03.2014. Now i need your professional advice regarding what should we do. 1) Whether to Revise the Income tax Return only showing additional income on computation only or 2) to revise the accounts and consequently revise our Audit Report or  3) Consider the income in next Financial year on receipt basis.

Thanking You

Regards:

CA Sahil Jain

Panipat

Normally the tax audit report should not be revised. But if there is a technical requirement then it can be revised as prescribed by the ICAI guidance note as under:

Guidance note page no 78 says that it should normally be not revised but to meet some technical requirement it can be revised.Then there is a detailed procedure to guide you.

It is better to file the revised ITR giving all the details and calculating the income correctly.

Sir,

If i revise return only without revising audit report, it reflect difference in Profit & Loss A/c uploaded with audit report and Revised Income Tax Return. Is this better option?

Kindly Reply

Regards

CA Sahil Jain

At the time of finalising and uploading ITR you did not have the figure of additional income on hand.You did the right thing. But afterwards, the additional income came to light. So, according to me it is better that the additional income is shown in the ITR only which is the better option.