The Andhra Pradesh High Court has allowed the exclusion of miscellaneous expenses in the GST account of a company that is currently under liquidation.
The application requests that the court authorize the official Liquidator to cover the costs associated with this application and any other incidental expenses from the funds available in the company’s account, which is currently under liquidation.
The applicant, in the affidavit filed in support of the application, stated that the half-yearly accounts for the period from 01-04-2022 to 30-09-2022 had been duly audited by the auditor. M/s. Padmanabha Rao and company. Chartered Accountants, 3. Appointed pursuant to the order of this Court, dated 27.07.2023, in C.A.No.7 of 2023. It was further stated that the auditor had submitted the audit report, dated 06.12.2023, in respect of the company (in liquidation) on 08.12.2023.
A perusal of the audit report, it was observed therein- “there are no adverse comments and observations on the Statement of Accounts” of the company (in liquidation). Insofar as the miscellaneous expenses are concerned, since there was no detail or the evidence, it cannot be allowed.
The single bench of Justice M.S Bhanumathi ruled that the application was allowed in all aspects as previously requested, with the notable exception of miscellaneous expenses.
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