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Having Questions..

A____ __A (Student All-ways) (275 Points)

21 March 2010

Hi,

I am CA final student and has already started ITR filling & Etc.. work.

i have filled one return of income for which i have got scruitiny notice. I have already replied the questionnaire . but now ITO wants to have some one on one chat..

here is what i feel problemetic:

1.The peroson whose return has fall in scruitiny has only salary income amounting 1,50,000 rs . but as he wanted to take loan i have shown him as a proprietor of Shiv Traders ( Traders of Sarees & Saree Fall ) and shown business income of rs. 99,875

now can i show income like that... if yes than what proofs i have to prepare..what proof is required for proprietorship concern Shiv Traders.

Details of the case are as under.

F.Y : 2007-08

Total Income : -2,12,292 rs

Net Tax Paid :- 16,458 rs

Please if any experianced person can reply..

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6 Replies

Amir (Learner) (4016 Points)
Replied 22 March 2010

Dear Akash,

First of al apologies 4 replying ur question - since u wanted only an expirenced person to answer it..

Bhai dont think that I m trying to make fun of dis case.....

But ur case reminds me of those lessons which our parents/teachers used to teach when we were kids -

"Honesty is the best policy" and "If u lie then to cover it u have to say 100 more lies......"

U have evry right to disagree with what i am saying but then I feel that way - Dont play with AO just tell him the facts that the assessee was not carrying on any business of this kind or any other for that matter, and whatever little income was shown is just with the intention to get a Bank Loan........ESPECIALLY IN LIGHT OF THAT SECOND LESSON OTHERWISE TOMORROW U MIGHT BE PUTTING UP ANOTHER QUESTION OF THIS KIND...........

WHAT WILL ACTUALLY HAPPEN IS DIFFICULT TO SAY.....I mean AO can consider the above reply and may also reject it.......AO may very well accept ur false declaration of Sole properotorship business but then again it is not certain.................

The entire game is of probability bhai, n trust me probability of winnning is high when u r standing beside truth.................

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CA Ayush Agarwal (Kolkata-Pune-Mumbai) (27186 Points)
Replied 22 March 2010

Agreed with amir that honesty is best policy.

but i think in this case " now telling true may got problematic to assesee"

so from my side just contact any experienced CA who is nearest to u & consult to him about this issue & he may guide u.

Santhosh Poojary (SIEMPRE AHÍ PARA TI) (15607 Points)
Replied 23 March 2010

AMIR SIRRRRRRRRRRRRRRRRRRRR

AWESOME REPLY.....

ITSREALLY PROUD TO HAVE MEMBERS LIKE U SIR.

A____ __A (Student All-ways) (275 Points)
Replied 23 March 2010

Please Don't Get Offended By My Reply..

But What I Need Is SOLUTION Not ADVICE.. ( Amir )

Amir (Learner) (4016 Points)
Replied 23 March 2010

Dear Akash,

Bhai, good to see that U have come out with what U felt from the reply above........

And no point for me feeling offensive....We are here to discuss only.........

Regarding Solution, Bhai I said in my reply that u should be telling everything honestly to AO and leave the rest on him........

But I guess now U dont want to contradict what u had reported in ur return earlier.........Perfectly fine, I am not saying that AO will/can not accept it only thing is chances are bit less....Less hope he does that in ur case.......