Ashim kr Ray (social service) (1695 Points)
23 June 2017
CA Hariprasad Nayak
(Chartered Accountant)
(221 Points)
Replied 23 June 2017
Absolutely Yes! Why not? As long as the books are maintained and audited, there is no bar in declaring a low profit; even a loss. However, if the client has transactions majorly with the related parties, there might be further scrutiny- especially by the Income tax department.
Regards,
CA Hariprasad Nayak
+91 9481 227 467
Ashim kr Ray
(social service)
(1695 Points)
Replied 23 June 2017
Sir, chances of scrutiny is there means.
CA Hariprasad Nayak
(Chartered Accountant)
(221 Points)
Replied 23 June 2017
Scrutiny assessment is based on the parameters/ criteria CBDT sets for every year (known as CASS reasons). Generally high refunds, higher loss, high transactions with related parties are the reasons for the scrutiny so far (for earlier years). I do not know if the trend is here to stay or not.
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