Many schedules and notes to accounts form part of the financial statements of any entity. The return forms do not provide for this information. This deprives the assessing officer of the basic tool to understand the financial statements. Many items contained in the notes to accounts may have revenue implications. It would difficult for the department to pick up important cases for scrutiny on random basis and call for details?
Submitted by navin on Fri, 10/24/2008 - 00:51
This issue has been clarified in circular no. 9 dt 10/10/2006. The will have this opportunity if the case is selected under scrutiny. At the processing stage, the A.O. is not supposed to look into these matter. The selection of cases is an internal matter which is objective and risk based.
