Intimation wrongly states taxpayer has offerred u/s. 44ad & states probable resolutiton to do audit
This query is : Resolved
30 November 2024
facts :- asst. 24-25. assessee is firm. turnover 7 crore, profit only 2 lakhs. no cash receipt/payment
i filed without audit but with bal sheet/prof loss stating 44ad is not applicable & 44aa (books) as applicable.
strangely, just got 143(1) intimation stating
"Tax Payer has offered income under section 44AD, and the gross receipt or income under the head “Profits and gains of Business or Profession” is more than 2 Crores; however, he has not filled Balance Sheet and Profit and Loss Account and has not got the books of account audited."
probable resolution ->
The taxpayer has offered gross receipt or income under the head “Profits and gains of Business or Profession” more than 3 crore. Hence, the taxpayer has to file the audit report as per section 44AB
my view--> i have not filed u/s. 44ad, i have said 44ab is not applicable. i have filed bal.sheet/prof loss. Hence, i feel intimation is grossly wrong. There is no need of audit as turnover less than 10 crore (its 7 crore), although margin is less than 6%
is audit required? what am i missing?
i filed without audit but with bal sheet/prof loss stating 44ad is not applicable & 44aa (books) as applicable.
strangely, just got 143(1) intimation stating
"Tax Payer has offered income under section 44AD, and the gross receipt or income under the head “Profits and gains of Business or Profession” is more than 2 Crores; however, he has not filled Balance Sheet and Profit and Loss Account and has not got the books of account audited."
probable resolution ->
The taxpayer has offered gross receipt or income under the head “Profits and gains of Business or Profession” more than 3 crore. Hence, the taxpayer has to file the audit report as per section 44AB
my view--> i have not filed u/s. 44ad, i have said 44ab is not applicable. i have filed bal.sheet/prof loss. Hence, i feel intimation is grossly wrong. There is no need of audit as turnover less than 10 crore (its 7 crore), although margin is less than 6%
is audit required? what am i missing?
30 November 2024
Though audit is not required, but check the general section properly, somewhere there must be affirmation of acceptance of presumptive assessment.
If everything correct, reply denying the rectification, as sec. 44AD IT act not availed.
If everything correct, reply denying the rectification, as sec. 44AD IT act not availed.
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17 December 2024
The income tax department has said, "A defective return notice was wrongly issued on 29th Nov 2024 stating that income is offered u/s 44AD, even though the gross receipts are more than Rs 2 crore and the balance sheet and profit and loss account have not been filed, and books of accounts are not audited. Kindly ignore the communication in this regard. We regret the above erroneous communication, which was issued, for the return filed for the AY 2024-25. This return is now being taken up for processing. Please await the receipt of intimation for the results of processing."
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13 January 2025
YES DEPARTMENT WITHDREW ITS STILL INTIMATION OBJECTION. THANK U
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13 January 2025
Good luck.
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