Audit of LLP

[satbir singhwahi]

Audit of LLP was done voluntary as stipulated by partners and audit report and ITR was filed during extended date for filing audited itrs. That is for assessment year 2019-20 the ITR was filed on 09.10.2019, and due extended date was 31.10.2019. There was loss c/f in ITR filed. The CPC disallowed the loss . On filing Appeal with CIT (A). the relief was allowed. But in appeal effect order the ITO has again not given relief and says that audit of LLP cannot be done voluntary and extended date is not applicable for LLP . Pls guide what we can do further for relief.

AI Summary

Voluntary Audit Spurs Debate: ITO Ignores CIT(A) Decision on LLP Tax Losses for AY 2019-20. Legal Steps Suggested. A discussion on a forum addressed the issue of a voluntary audit conducted by a Limited Liability Partnership (LLP) and subsequent tax filing for the assessment year 2019-20. The LLP filed its Income Tax Return (ITR) by the extended deadline, but the Centralized Processing Center (CPC) disallowed the carry forward of losses. Although the Commissioner of Income Tax (Appeals) [CIT(A)] granted relief, the Income Tax Officer (ITO) did not comply. Participants debated whether the ITO could disregard the CIT(A)'s decision and the implications of voluntary audits under the LLP Act. Suggestions included challenging the ITO's order and further research on legal proceedings.