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Question ID : 40755

542430

An Advocate has his Gross Receipts from his profession Rs. 25,00,000 and Net Profit Rs.8,50,000 during FY19-20. He is maintaining proper books of accounts u/s 44AA. Can he file ITR-3 showing such profits? Also, can his books of accounts be audited by his son, who is a Chartered Accountant in Practice?

Posted by ARJUN GUPTA on Aug 04, 2020

Filed Under DIRECT TAXES

Answer ID : 80660

Yes, he can file ITR 3 and get his accounts audited. No, his son can't audit his books as per Second Schedule Part 1 Clause 4. A member of the Institute shall not express his opinion on financial statements of any business or enterprise in which one or more persons who are his “relatives” within the meaning of AS 18 has/have, either by themselves or in conjunction with such member, a substantial interest in the said business or enterprise. Relative as per AS 18, in relation to an individual, means the spouse, son, daughter, brother, sister, father and mother who may be expected to influence, or be influenced by, that individual in his/her dealings with the reporting enterprise.

Posted by SHUBHAM SONI on Aug 05, 2020