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Re-opening of accounts on application of a regulator/government is permissible up to:
A3 financial years preceding
B5 financial years preceding
CPermitted indefinitely
D8 financial years preceding
Answer & Solution
Correct answer: D. 8 financial years preceding
1. Section 130(3) — no order shall be made for reopening of accounts relating to a financial year earlier than EIGHT financial years immediately preceding the current FY.
2. Court/Tribunal order required.
3. Hence (C).
_Source: ICAI BoS CA Inter Paper 2 — Accounts of Companies_