My employer's firm has been dissolved and the Partners wish to settle the accounts. On of the parties has contended the accounts to be true and fair, and has asked for re-audit. of accounts. The audited accounts contested are from F.Y. 06-07 to F.Y. 09-10.
Some imp. facts:
1. Accounts of F.Y.06-07 have been scrutinised and re-assessed by I.T. Comm. (Appeals). He has disallowed a meagre amount of Rs. 20,000 in appeal against ITO in favour of the Firm.
2. Rest of the years have allowable growth in the expenses but the Net profit has also shown meagre growth.
3. Most of the expenses that the partner is contesting have been allowed by the IT Commisioner Appeals for F.Y.06-07.
4. All cash expenses are supported by Vouchers and audited books of accounts, and all cheque payments are supported by valid receipts.
My query is:
1. Does the Arbitrator have the power to order for re-audit of accounts?
2. If yes,then under which act and section?
3. If not, then who has this authority?
4. In case of re-audit, can the auditor contest the expenses that were allowed by the IT commissioner Appeals for F.Y.06-07 and for the rest of the years.