Notice u/s 139(9)

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Parul Agrawal (Querist)
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26 February 2016 The notice has been served to a partnership firm whose Itr 5, showing income from 44AD has been filed. The assesse is a no books case, hence we properly filled the details of cash balance in no books head. In response to it, we have made B/S & P&l has duly filed it. But the notice has again been served. Can anyone tell the response to it?

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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26 February 2016 Could you kindly clarify how the Balance Sheet & Profit & Loss account were made, if no books of accounts are maintained. Was it a detailed P& L Account or just with a few heads like Sales, Other Incomes, Purchases, Salaries, Rent, Rates & Taxes and Other Expenses. If your P & L showed just a few heads of Expenditure you can justify your P & L. You have issued Sales Invoices, received Purchase Invoices, know the salaries, rent and taxes paid, easily ascertainable from your bank statements.

I feel you have submitted a detailed P & L Account, and hence the notice u/s 139 (9) as to how you could file such an accurate account and Statement of Affairs.

Your response should be framed depending on the circumstances and also justify your P&L A/C and B/S.