Cash flow statement - sec 44aa -sec-44ad

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girigattupalli (Querist)

21 January 2016 respected sir ,
question very simple . cash flow statement forms books of occounts or not (as per deffinition of sec 44aa). in my opinion cash flow statement which contains details of incoming and out going of cash certainly forms part of books of occounts . please discuss.
thanking you

Nikhil Kaushik

Nikhil Kaushik (Expert)

21 January 2016 question is actually very simple. But we are already out of 44AA and we need to provide basis of 44AD return. So the question is how will you establish what gross receipts you made during the year? now, if you see the 44AD returns (ITR4S or "no accounts case" part of ITR-4) both require to provide details of gross receipts, cash in hand, debtors etc. To establish these AO has right to ask for information to verify the figures provided in the return.

So you may go on arguing on whether it constitutes books of accounts or not. AO has absolute rights to ask for these basic things.

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)

21 January 2016 You have to give basis of declarations of turnover. Cash flow statement help you justify turnover. AO has right to examine cash flow statement to verify the turnover filed in the return.

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