Re-opening of Accounts on Court’s or Tribunal’s
Orders

(i) the relevant earlier accounts
were prepared in a fraudulent manner; or
(ii) the affairs of the company were mismanaged during the relevant period, casting a doubt on the reliability of financial statements:
(ii) the affairs of the company were mismanaged during the relevant period, casting a doubt on the reliability of financial statements:
Provided that the court or the
Tribunal, as the case may be, shall give notice to the Central Government, the
Income-tax authorities, the Securities and Exchange Board or any other
statutory regulatory body or authority concerned [or
any other person concerned] and shall take into
consideration the representations, if any, made by that Government or the
authorities, Securities and Exchange Board or the body or authority
concerned [or the other person concerned] before
passing any order under this section.
(2) Without prejudice to the
provisions contained in this Act the accounts so revised or re-cast under
sub-section (1) shall be final.
(3) No order shall be made under
sub-section (1) in respect of re-opening of books of account relating to a
period earlier than eight financial years immediately preceding the current
financial year:
Provided that where a direction has
been issued by the Central Government under the proviso to sub-section (5) of
section 128 for keeping of books of account for a period longer than eight
years, the books of account may be ordered to be re-opened within such longer
period.
DISCLAIMER: THE ARTICLE IS BASED ON
THE RELEVANT PROVISIONS AND AS PER THE INFORMATION EXISTING AT THE TIME OF THE
PREPARATION. IN NO EVENT I SHALL BE LIABLE FOR ANY DIRECT AND INDIRECT RESULT
FROM THIS ARTICLE. THIS IS ONLY A KNOWLEDGE SHARING INITIATIVE.
THE AUTHOR – CS DEEPAK
SETH (ASSOCIATE PARTNER HELPINGHANDS PROFESSIONALS LLP) AND CAN BE
REACHED AT CONTACTHHPRO@GMAIL.COM OR 9910248911.
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