Mr. “A” has filed return u/s 44AD of the income tax act 1961 during the financial year 2010-11. He has declared income @ 8% of total turnover 48,00,000/-. And he has not filed and figure regarding Closing Stock, Sundry Debtors and sundry creditors in ITR-4.
Now in Next financial year 2011-12 assessee has achieved turnover above then 1 carore. Books of accounts fall under the tax audit in same year in the same year he has shown opening stock as valuated in books.
Is AO can make addition in FY 2011-12 on the basis of this that “A” has not declared closing in FY 2010-11 and he has shown opening stock in audited trading account?
19 December 2013
Under this scheme maintenence of books is exempted. So the balance sheet for FY 2010 - 11 with stock but not disclosed in ITR is a technical error or incomplete return. You can continue with said balance sheet and filing error can be sorted in assessement if called for.
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