Section 147 and 148

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 September 2013 Can an AO is vested with power under section 147 and 148 to:

a) make additions to drawings and tax the
income from undisclosed sources,

b) disallow the loans from non-relatives
because it was interest free.

Does a person who is a trader files return
of 8% (presumptive tax return 4S) is required
to maintain books of accounts,when annual
turnover is below 45 lakhs.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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23 September 2013 a) AO can make additions if there is evidence of income escaping tax.

2. there are judicial precedents both in favor of revenue and assessee are there. But decision often depends on facts of the respective cases. Often disallowances is made on interest paid on interest bearing loans in case the company has given interest free loans.

3. No. Once profit at 8% is offered, no need to maintain accounts.

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