Power of assessing officer

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 September 2013 1) Once i file presumptive tax returns of 8%
profit on my 45 lakhs gross turnover,
Has the A O any power under income tax to
call my books of accounts,
What will happen if AO calls for books of
accounts and i am not under any obligation
to maintain books of accounts as per
provisions of ACT. I am a small trader
of hardware materials.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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30 September 2013 AO cannot call for documents which are not required to maintain. However, he may be within his right ask for your bank statements, sales vouchers etc to establish correctness of your turnover claim.

Also please note that if the AO is able to determine that your profit was higher than 8%, he shall be within his rights to make additions to your income.

Message likes : 1 times

Ankur Agrawal

Ankur Agrawal (Expert)
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30 September 2013 i also agree with Nikhil.

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C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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21 October 2013 If you have not maintained any books of account as provided u/s 44AA and you have shown your turnover on the basis of something and that something is either your bills or Bank transaction. The ITO can call for it to satisfy the turnover as shown and the basis and in case the TO is more than what you have sown he may make assessment at higher TO and collect tax from you with penalty.