One of our clients received an intimation u/s 143(1) for AY '09-10, from the CPC..
The above client is running a small textile shop in our town and his disclosed net profit was a little more than Rs.1,60,000/- for the said AY. No TDS has been claimed by the assessee for the said AY.
However, in the intimation, the AO has determined his income to be Rs. 2,65,000/-. However, the basis of which such determination was done can't be identified from the intimation.
My questions are:
1. Whether such intimation without showing sufficient grounds for determining the income u/s 143(1), valid?
2. What follow-up measures should we adopt to identify the method adopted by AO?
3. If a rectification u/s 154 is possible, what procedures should we adopt for seeking such rectification?
Kindly reply ASAP, coz its very urgent…
Thanks…..
CAclubindia
