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44AD & 44AB

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ADARSH JAIN

28 Points Posted on 07 June 2020

We have filed return for the AY 2017-18 u/s 44AD declaring turnover of ₹1.8cr. Assessment order was passed u/s 143(3). During the said AY the assessee deposited cash amounting to ₹2.35cr. AO made the addition of unexplained credit of ₹0.55cr (2.35-1.8). We filed appeal to CIT(A).
We want the following advices-
Actual turnover is 2.35cr which was incorrectly declared by us. What is the solution for the same? Should we file the audit report now u/s 44AB in the current date. We are ready to bear the penalty for not submitting the audit report but not for concealment of income.
Is there any other solution for the same.

Replies (2)

Quick Summary

This discussion addresses a taxpayer who incorrectly declared turnover under Section 44AD for AY 2017-18, leading to an assessment order and an addition for unexplained credit. The taxpayer seeks advice on correcting the actual turnover of ₹2.35 crore and whether to file a Section 44AB audit report retrospectively, even if it incurs penalties. The core issue is how to best handle the discrepancy and potential concealment of income.