31 December 2015
my client was trading sand. his turnover is 23 lakhs. but he did not maintained books. Can AO ask for balance sheet even sec 44ad is applicable to assessee. what should I do, provide tentitive balance sheet or not..? please guide.
31 December 2015
NO need to provide the tentative balance sheet and P&L. reply him that the assessee has opted section 44AD hence no books of accounts maintained. When you reply the same, the AO will ask for the justification of the sales/turnover disclosed.
31 December 2015
OK. I replied him that books are not maintained and assessee is covered under sec. 44 ad. but he is demanding bank statement and balance sheet. what should I do. is it proper to provide bank account or not.
31 December 2015
As I mentioned you above he will demand the proofs for the justification of the turnover. The bank account entries on receipt side will form turnover, you should check it out. Also he may demand the sale bills. If he wants the balance sheet, then ask him that you can provide him the tentative balance sheet only.
31 December 2015
ok sir. shall I mention the word "tentative" on the face of balance sheet. Because I think he will ask justification for capital amount on the basis of that balance sheet. then it will be difficult to provide details for capital account balance
31 December 2015
Dear I think in your case the client was doing business from his saving bank account.and the saving bank account represents transaction above Rs.10 lakhs.
31 December 2015
ok. is it possible for ao to ask justification for other items in tentative balance sheet e.g. capital, trade receivables etc??? please clarify
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