Misrepresenting business expenses
anand
(Querist) 21 May 2012
This query is : Resolved
If a business partner is extensively misrepresenting personal expenses such as vacations abroad, personal travel expenses, etc and claiming these as business expenses, does this qualify as tax evasion? I have documentary evidence of this. Under what sections do I report it to the Income Tax officials?
R.K Nanda
(Expert) 21 May 2012
Issue a legal notice to him to explain why he is putting P.Exp.in business Exp.
ajay sethi
(Expert) 21 May 2012
if your business partner is placing personal expenses as business expenses confront your partner .request him to reimburse the firm . if he fails to do so then proceed further .
Suhail A.Siddiqui
(Expert) 21 May 2012
Income Tax Act do not have any section for complain, you may provide relevant evidences with complain to assessing officer, he is very much eligible to open matter for questioning.
Shonee Kapoor
(Expert) 22 May 2012
Issue him a notice for the same.
File a civil suit for recovery of the said amount.
This is purely a civil dispute and no criminal or IT action is made out.
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
C. P. CHUGH
(Expert) 22 May 2012
All/Both the Partners are required to adopt the accounts and sign balance sheets before getting it audited and submission to ITD. Why did not you raise this issue before the Auditors of the Firm. Donot you have substantial interest in the Firm. If you are minority stake holder and is being cheated by Majority stake holder partner, you can approach the jurisdiction local court and request it to order a fresh examination of accounts by independent auditors. Still Better, if love has been lost between the partners, dissolve the firm and retire peacefully. Do not forget being a partner, in case the matter is reopened by ITD, you are equally liable for any addittional taxes or penalties imposed upon such firm. Think peacefully and decide accordingly.
