Home Case Index All Cases Companies Law Companies Law + HC Companies Law - 2007 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2007 (7) TMI 413 - HC - Companies LawShow cause notice - Non compliance with accounting standard and bogus accounting statements - Held that:- Matters relating to accounts are specialised business and the Registrar has not been able to demonstrate why reliance on Note 8 of Schedule XIV to the Act was misplaced. It is not necessary for the petitioners in proceedings of the present kind to conclusively establish that there was no departure from the guidelines found in the Accounting Standards. To repeat, such fiscal matters are always open to interpretation, divergence of opinion and never free from doubt. The petitioners and the auditors of the company have read Note 8 to justify charging of depreciation in the manner it has been done during the relevant financial year and there does not appear to be any palpable lack of bona fides on the petitioners’ part on such score. In respect of the two major heads of charge seriously pressed by the Registrar, the petitioners appear to have acted honestly on their interpretation of AS-13 and Note 8 of Schedule XIV to the Act. In addition, the petitioners had specifically mentioned such matters in Note 4 and Note 1(d) of Schedule 17 to the accounts for the relevant year. The petitioners have acted reasonably not only in complying with the accepted norms but in specifically drawing the attention of whoever cared to read the accounts to such matters. Even if there were any violation on the part of the petitioners, and of which there is serious doubt, the petitioners ought fairly to be excused. The petitioners are relieved of all liabilities in respect of the 12 show-cause notices being the subject-matter of these proceedings.
|