Methods of Investigations of Books of Accounts and Other Documents

About Methods of Investigations of Books of Accounts and Other Documents

Chapter 1 — Introduction 1
Chapter 2 — Different Stages of Evolution of Money 8
Chapter 3 — Maintenance of Books of Account by Certain Persons Engaged in Specified Professions or Businesses [Section 44AA] 12
Chapter 4 — Maintenance of Books of Account and other Documents by Persons Carrying on Certain Professions [Rule 6F of the Income Tax Rules, 1962] 20
Chapter 5 — Maintenance of Books of Account and other Documents by Trusts or Institution [Rule 17AA of the Income Tax Rules, 1962]  23
Chapter 6 — Method of Accounting 33
Chapter 7 — Defective, Duplicate or No Accounts Cases 84  84
Chapter 8 — Examination of Books of Account  93
Chapter 9 — Generating Undisclosed Income by
Manipulation of Accounts

96
Chapter 10 — Manipulation of Books of Accounts 100
Chapter 11 — Examination of Manufacturing Account 103
Chapter 12 — Examination of Trading Account 117
Chapter 13 — Examination of Profit & Loss account  123
Chapter 14 — Examination of Genuineness of Vouchers 135
Chapter 15 — Inflation of Expenses 136
Chapter 16 — Verification of Gross Profit Rate (GP Rate) 137
Chapter 17 — Net Profit Rate 146
Chapter 18 — Examination of Balance Sheet 156
Chapter 19 — Examination of Statement of Assets and Liabilities 165
Chapter 20 — Share Capital 167
Chapter 21 — Share Application Money 177
Chapter 22 — Share Premium in Excess of Fair Market Value to be Taxed as Income [Section 56(2)(viib)] 191
Chapter 23 — Sundry Debtors (Trade)  241
Chapter 24 — Sundry Creditors (Trade)  244
Chapter 25 — Loans, Advances and Deposits    246
Chapter 26 — Reserve & Surplus    247
Chapter 27 — Secured Loans    250
Chapter 28 — Unsecured Loans    252
Chapter 29 — Investment    255
Chapter 30 — Fixed Assets    257
Chapter 31 — Depreciation    261
Chapter 32 — Liabilities    264
Chapter 33 — Current Liabilities    269
Chapter 34 — Contingent Liabilities    270
Chapter 35 — Provisions    274
Chapter 36 — Examination of Cash Book    275
Chapter 37 — Negative Cash Balance    280
Chapter 38 — Examination of Day Book    282
Chapter 39 — Contra Entry    283
Chapter 40 — Cash in Hand    284
Chapter 41 — Examination of Cash Flow Statement    285
Chapter 42 — Funds Flow Statement    288
Chapter 43 — Examination of Ledger    289
Chapter 44 — Verification of squared up accounts during the year    291
Chapter 45 — Trial Balance    293
Chapter 46 — Examination of Journal    294
Chapter 47 — Opening Stock & Closing Stock    295
Chapter 48 — Closing Stock    304
Chapter 49— Verification of Purchases    316
Chapter 50 — Fictitious purchases    326
Chapter 51 — Bogus Purchases    329
Chapter 52 —Verification of Sales    355
Chapter 53 — Understatement of Sales by Suppression    361
Chapter 54 — Fictitious Sales    363
Chapter 55 — Treatment of Cash Sales    365
Chapter 56 — Unaccounted Purchases & Sales    371
Chapter 57 — Trade/Cash Discounts    376
Chapter 58 — Consignment Account Meaning of Consignment Account    378
Chapter 59 — Bogus Capital Gains from Penny Stocks    384
Chapter 60 — Investigation of Bank Accounts    424
Chapter 61 — Examination of Bank statement    438
Chapter 62 — Cash Deposits found in Banks    440
Chapter 63 — Deposit Found in Foreign Bank Account    479
Chapter 64 – Drawings    484
Chapter 65 — Peak Credit Theory    485
Chapter 66 — Theory of Telescoping in Determining the Taxability of Undisclosed Income    490
Chapter 67 — Surrounding Circumstances and Test of Applying Human Probabilities    507
Chapter 68 — Ratio Analysis    525