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Ao asking to provide balance sheet when sec 44ad is applicable.

Santosh Nalawade (Practice) (355 Points)

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.

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3 Replies

Prateek (Partner) (143 Points)
Replied 31 December 2015

Hi Santosh

If the ITR is filed under presumptive basis under section 44AD then accounts are not required to be maintained under section 44AB but the assesse is required to keep and maintain such books of account and other documents as may enable the Assessing Officer to compute his total income in accordance with the provisions of this Act.

But if the ITR is not filed under section 44AD then the AO can ask for accounts under section 44AB.

For more information you can visit Section 44AD, Section 44AA