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CA Intermediate · Taxation · Accounts and Records

Anand Steels, a registered manufacturer, had its annual return for 2024-25 filed in time. In October 2026 an appeal concerning the tax demand for that year is pending before the Appellate Authority. The normal 72-month retention period would expire in December 2030. What is the position about retaining the records for 2024-25?

The records must be retained until the later of 72 months from the due date of the annual return or one year after final disposal of the pending appeal. Anand Steels therefore cannot destroy the 2024-25 records merely because the normal period has ended.

  1. ARecords may be destroyed after December 2030 even if the appeal is still pending
  2. BRecords must be retained for one year after final disposal of the appeal, if that is later than the normal periodCorrect
  3. CRecords must be retained only until the appeal is filed
  4. DRecords may be destroyed after 36 months from the due date of the annual return

Explanation

Where an appeal or revision is pending, the registered person must retain the books for one year after the final disposal of that appeal or proceeding, or for the normal 72 months, whichever is later. Since the appeal is pending, destroying records at the normal expiry would breach this rule if disposal comes later.

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