Filing of Income tax return

[Tax DEPTT]

There is a company which is incorporated on 31.03.2011 and certificate of commencement of business u/s 149 of the Companies Act, 1956 was granted on 30-04-2011. During this transaction, there has been no transaction except preliminary expenses.

Please advise whether Annual Report u/s 211 is required to be maintained and Annual Return under Companies Act is required to be filed with ROC. Further, whether form 3CD and Income Tax Return is required to be filed with Income Tax Department.

[CAGOPALJI AGRAWAL]

The company may close its accounts from 31/03/2011 to 31/03/12 and need not to file the ROC returns but income tax return for even one day technically needs to be filed. Since there is no business hence the provisions of section 44AB (form 3CD) etc would not apply.

AI Summary

Income tax return filing required even for minimal incorporation period; audit provisions under section 44AB inapplicable if no business.
If a company is incorporated and has only preliminary expenses with no business commencement, ROC annual returns need not be filed for the initial period, but an income tax return must still be filed for the accounting period; income tax audit and Form 3CD obligations do not apply in the absence of business activity.