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?
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.
CAclubindia
