Volatility in ITR

This query is : Resolved

Amit (Querist)
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30 July 2007 I have filed I.T.R of Rs 3.5 Lacs last year (A.Y. 06-07). If file I.T.R. of Rs 1.0 lacs this A.Y. 07-08, is there any chance that my case can be come under scrutiny due to drastic reduction in Income bcoz the business has been shut down inspite of being in reasonable profit because of articleship.(Business is of Trading in 'Share & Security')

Aditya Nemani

Aditya Nemani (Expert)
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30 July 2007 There is no thumb rule for that, moreover it depends on your sources of income and the exact nature of business that you are in. Also it depands whether the reduction in income is on account of any deductions claimed, bad debts or other circumstances.

Bottom line is that it is not a sure thing that the return shall be scrutinized just because the income shown is less that the income for the immediately preceeding year.

Amit

Amit (Querist)
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31 July 2007 I have filed I.T.R of Rs 3.5 Lacs last year (A.Y. 06-07). If file I.T.R. of Rs 1.0 lacs this A.Y. 07-08, is there any chance that my case can be come under scrutiny due to drastic reduction in Income bcoz the business has been shut down inspite of being in reasonable profit because of articleship.(Business is of Trading in 'Share & Security')