Section 44 AF


08 July 2008

Dear Sir,
Return has been filed u/s 44 AF of the Income Tax Act, for the F.Y. 2005-06 A.Y. 2006-07. This case is under process of assessment u/s 143(3) of the Income Tax Act. Now the A.O. has asked for the details of household expenses like vegetable, food, grains, cloths, school fee along with the supporting documents. Whereas section 44 AF clearly says that provision for maintenance of books of accounts is not applicable if the return is filed u/s 44 AF of the Income Tax Act. My question is can A.O. do so?

In this case A.O. has also asked for the list of debtors and creditors, bank confirmation as well as the capital verificaion. Kindly give your valuable guidence. Thanks in advance. Kamal Gupta FCA 9413339032

Yatesh Prakash Renuke (Expert)
08 July 2008

Hi Kamal,

According to sec.44AF the assessee is not required to maintain his books of accounts if his turnover is less than Rs. 40 Lacs. But he has to satisfy the ITO that his total turnover of the business is less than Rs. 40 Lacs. If you convince the ITO that your turnover is less than Rs. 40 Lacs Then you are free to tell him I had not keptn any record.



Kamal Gupta (Querist)
11 July 2008

Dear Yatesh,
Thanks a lot for replying back. We have given the details of every sales bill and ITO is now asking the details and supporting voucher of personal expenses as I said in my original query. He is asking of list of sundy debtors, creditors and capital verification Can he do so in the case return filed under section 44 AF?

Kamal Gupta (Querist)
12 July 2008

Can the A.O. examin the person on oath in case of assessee who has filed his ITR u/s 44 AF

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