Urgent

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 January 2013 Dear Sir,
One of my client is a manufacturer of wooden cable drums and his annual turn over would be around 20 lacs. And he do not file any IT return.
Now he has receive an intimation that is not a notice under any section of the act, stating that he has received a sum of Rs. 1655850/- in AY 2010-11, and he has not filed the return for the same AY. Please provide copy of return within 3 days,if you have filed any. This intimation is bearing the date of 18-12-2012.
Now again another same intimation issued on 28-12-2012 has been received, however this time AY is 2011-12, but sum mentioned therein is same Rs. 1655850/-.
Please advise proper remedy.
Thanks in advance.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

01 January 2013 File the return on the basis of correct turnover and produce the copy of ITRV for the AY 2011-12. Your case is covered U/s 44AD, so show profit @ 8% of the turnover.
.

Querist : Anonymous

Querist : Anonymous (Querist)

01 January 2013 Sir, return of AY 2011-12 can be file but how to deal in respect of AY 2010-11, as it has been time barred and in AY 2010-11 Sec. 44AD was applicable to civil contractors and 44AF was to retailers. In which category I should take him?

CA GAGAN KHARBANDA

CA GAGAN KHARBANDA (Expert)
Follow

02 January 2013 Submit your income computation to the concerned officer by taking benefit of section 44AF for AY 2010-11. if your income was less to the limit of compulsorily file return, then case will be solved in first hearing.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

02 January 2013 I WOULD LIKE TO ADVISE YOU TO PREPARE PROFIT & LOSS A/C AND BALANCE SHEET IN THIS CASE, AS A MANUFACTURER CAN NOT BE COVERED UNDER SECTION 44AF. IT'S APPLICABLE FOR RETAIL TRADERS ONLY. HOWEVER, AS ADVISED BY EXPERT CA GAGAN, KEEP THE INCOME AT BELOW TAXABLE LEVEL.
.

CA GAGAN KHARBANDA

CA GAGAN KHARBANDA (Expert)
Follow

02 January 2013 Right...Ur case will not be covered under sec 44AF and you have to compute income on basis of profit & loss account.

nd Thanks Paras ji for your valuable sharing...

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
Follow

17 January 2013 The information collected by the IT Department is based on AIR Reports submitted by Banks.

Now, on the basis of both the notices you submit physical returns on actual basis.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now