Clause wise discussion on form 3CD PART A clause 1 to clause 6 to form 3 CD

[Answer]

PART – A

1. Name of the assessee : ___________________
2. Address : ___________________
3. Permanent Account Number : ___________________
4. Status : ___________________
5. Previous year ended : 31st March _________
6. Assessment year : ___________________

[Clauses 1 to 6]

[Answer]

"Assessee" has been defined under section 2(7) of the Income Tax Act, 1961

"assessee" means a person by whom [any tax] or any other sum of money is payable under this Act, and includes—

(a) every person in respect of whom any proceeding under this Act has been taken for the assessment of his income [or assessment of fringe benefits] or of the income of any other person in respect of which he is assessable, or of the loss sustained by him or by such other person, or of the amount of refund due to him or to such other person;

(b) every person who is deemed to be an assessee under any provision of this Act ;

(c) every person who is deemed to be an assessee in default under any provision of this Act ;

So name of the assessee whose accounts are being audited under section 44AB should be given.

However, if the tax audit is in respect of a branch,name of such branch should be mentioned along with the name of the assessee.[/COLOR][/SIZE]

In case of proprietorship concern, normally it is observed that the personal saving account of the proprietor is not incorporated in the books of account. The accounting of these saving account may have the impact on the total income of the assessee. So if the tax auditor is not provided these details, he should mention the name of the proprietorship concern against the name of the assessee with the name of the proprietor meaining thereby the auditor would give the report on the proprietorship concern only not the proprietor.

[Answer]

The address should be the latest address as on the date of signing of the audit report

• If the tax audit is in respect of a branch or a unit, the address of the branch or the unit should be given.
• In the case of a company, the address of the registered office should also be stated.
• In the case of a new assessee, the address should be that of the principal place of business

The guidance note on Tax Audit issued by ICAI states vide para 17.2 as under:

The address to be mentioned under clause (2) should be the same as has been communicated by the assessee to the Income-tax Department for assessment purposes as on the date of signing of the audit report.

But most respectully, the author differs from this guildeline as in his view the latest address of the assessee as on the date of audit report whether it has been communicated to the income tax department or not as on the date of report must be mentioned as this is nothing but a true statement of fact.

[Answer]

[U]Under clause (3)
The permanent account number (PAN) allotted to the assessee should be indicated.

If the assessee has not been allotted the permanent account number as on the date of signing of the report, that fact should be indicated.

Sometimes the assessee is having more than one PAN though these duplicity has been resolved to a larger extent in the income tax database, in that case the auditor must check the PAN from the income tax department portal incometaxindia.gov.in

[Answer]

Status of the assessee is to be mentioned.
This clause is not asking for residential status. It is asking for the status of the assessee as per section 2 (31) of the Income Tax Act.
Section 2(31) states as under:
"person" includes—
(i) an individual,
(ii) a Hindu undivided family,
(iii) a company,
(iv) a firm,
(v) an association of persons or a body of individuals, whether incorporated or not,
(vi) a local authority, and
(vii) every artificial juridical person, not falling within any of the preceding sub-clauses.
¹[Explanation.—For the purposes of this clause, an association of persons or a body of individuals or a local authority or an artificial juridical person shall be deemed to be a person, whether or not such person or body or authority or juridical person was formed or established or incorporated with the object of deriving income, profits or gains;]
THE STATUS OF LLP IS FIRM AS PER AMENDED SECTION 2(23) BUT FOREIGN LLP WOULD BE TREATED AS COMPABY NOT THE FIRM.


In case of dispute regarding status the full facts should be mentioned.
The status can also be checked from the PAN card itself.

[Answer]

Previous year had been defined under section 3 of the Income Tax Act as under:

For the purposes of this Act, "previous year" means the financial year immediately preceding the assessment year :

Provided that, in the case of a business or profession newly set up, or a source of income newly coming into existence, in the said financial year, the previous year shall be the period beginning with the date of setting up of the business or profession or, as the case may be, the date on which the source of income newly comes into existence and ending with the said financial year.]

Under clause (5)

Since the previous year under the Act ends uniformly on 31st March, the relevant previous year should be mentioned.

example: 31st March _XXXX_

[Answer]

Section 2(9) defines the term assessment year as under:

"assessment year" means the period of twelve months commencing on the 1st day of April every year


The assessment year relevant to the previous year for which the accounts are being audited should be mentioned.

The assessment year follows the previous year (financial year).

So income for the period of April 1, 2009 to March 31, 2010 would fall in the previous year 2009-10 and assessment year 2010-11.