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Section 44ad and cash profit

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(Querist)
06 December 2016 Mr "A" is a whole sale dealer. His turnover during the year is 50 lakhs. He Would declare 8% profit on turnover U/s 44 AD and his profit would be 400000/-. However his actual profit is 30% i.e. 15 Lakhs which are accumulated in this bank account. What would be the consequences of this. Can Mr. "A" Invest this 15 lakhs in purchasing an Asset. let us take there is no depreciation. On what profit should he pay tax. on 400000 or 15 lakhs.
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VIPIN GUPTA

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VIPIN GUPTA (Expert)
06 December 2016 Sir in my opinion you can not go for Sec 44AD
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Dhirajlal Rambhia

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Dhirajlal Rambhia (Expert)
31 October 2021 Pay tax on 15 lakhs.
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