21 April 2014
Assessee gross receipt from eligible business is 15.00 lacs (all receipts through bank) and expenses are say 10.00 lacs (all expenses through bank). Is it possible to still show a income if 8% i.e 1.2 lacs or will he have to calculate his income which would be 5.00 lacs.
21 April 2014
assuming that you have mentioned that the income relates to an eligible business, I suggest that you can still show 8% profit. once 44AD applies, you have every right to show only 8% as profit. AO cannot make addition on the basis that excess profit was made on the basis of review of bank statements.