Unque quer regarding tax audit & presumptive taxation

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 September 2011 Dear Experts

I am in delima in deciding what to do in case of a assessee whose turnover is abt. 20 Lacs & asked me to do Tax Audit U/s 44AB.

On verification of the books of accounts it is found that number of times cash purchase was done above Rs 20,000 thereby resulting in contravention of Sec. 40A(3).

My query is that:
"is it possible that i conduct the tax audit u/s 44AB mentioning the details of Sec. 40A(3)contravention in 3CD report AND FILE THE IT RETURN UNDER PRESUMPTIVE TAXATION SCHEME U/S 44AD so that contravention of 40A(3) would not be applicable to him"

The purpose the client wish to get accounts audited is to get bank loan as bankers asking him for audit report.

Please suggest is it possible to do or suggest some other alternate solution.....

Very thanks in advance for solving the delime.....

Regards

sadashiv Rupchand Gaikwad

sadashiv Rupchand Gaikwad (Expert)

22 September 2011 For getting Loan from the Financial Institute Audit Report is not required. You can produce financial Statement such Computation of Taxable Income, Trading A/c, Profit & Loss A/c, Balance Sheet, Income tax return Copy etc.The fiancial position must be strong and believable. You can show extra income.Good relationship with bakers is must.

Querist : Anonymous

Querist : Anonymous (Querist)

22 September 2011
I asked something and reply was on other topic.....

please reply specific to the query.