Tax Audit Report can be revised by CA for recalculation of disallowance u/s 40 or 43B on payments made afterwards

Tax Audit Report can be revised by CA for recalculation of disallowance u/s 40 or 43B on payments made after furnishing of report in Form 3CD

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)

Notification No. 28 /2021

New Delhi, the 1st April, 2021

(INCOME-TAX)

G.S.R. 246(E).––In exercise of the powers conferred by section 44AB read with section 295 of the Income-tax Act (43 of 1961), the Central Board of Direct Taxes, hereby, makes the following rules further to amend the Income-tax Rules, 1962, namely:-

1. Short title and commencement.–

(1) These rules may be called the Income-tax (eighth Amendment) Rules, 2021.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Income-tax Rules, 1962,-

(a) in rule 6G, after sub-rule (2), the following sub-rule shall be inserted, namely:-―

“(3) The report of audit furnished under this rule may be revised by the person by getting revised report of audit from an accountant , duly signed and verified by such accountant, and furnish it before the end of the relevant assessment year for which the report pertains, if there is payment by such person after furnishing of report under sub-rule (1) and (2) which necessitates recalculation of disallowance under section 40 or section 43B.” ;

(b) in Appendix II, in Form 3CD,-

(i) in PART –A for clause 8A, the following clause shall be substituted, namely: -―

“8A Whether the assessee has opted for taxation under section 115BA/115BAA/115BAB/ 115BAC/115BAD?.” ;

(ii) in PART-B, for clause 17,the following clause shall be substituted, namely:-―

17. Where any land or building or both is transferred during the previous year for a consideration less than value adopted or assessed or assessable by any authority of a State Government referred to in section 43CAor 50C, please

(iii) in clause 18, for sub-clauses (ca) and (cb), the following sub-clauses, shall be substituted namely:-

Download Notification 

• Penalty u/s 271B for unfilled column 40 in Tax Audit Report Form 3CD deleted by ITAT
• Merely ex-parte rectifying computation without amending assessment order not make it nullity- ITAT
• Once assessee discharges primary onus, it shifts to AO to bring evidence to contrary – ITAT
• Cost Inflation Index for FY/Tax Year 2026-27 notified by CBDT. See Up-to-date Table of CII
• Power of CIT(A) u/s 251(1)(a) to remand case can be exercised only in best judgment assessment