44ad - can take benifit or not

Yes, of course.. if your return considered for The Scrutiny Assessmentsu/s 143(3) of Income Tax Act 1961, you have to provide every information that AO requires. All receipts, exenses.. 

When a case is selected for scrutiny Assessment the A.O usually ask for the following:-

-Books of Accounts

-Bank Statements

-Confirmation certificates of Loans if any

-Name and Addresses of Sundry Creditors, Debtors

-The account statements of Sundry Creditors and Debtors for verification of transactions

In case the A.O. finds any discrepancy the assessee may be asked to explain the same.

Mere filling of confirmatory letters and producing the loan creditors do not discharge the onus that lies on the assessee. The assessee has to prove the disputed transaction prima facie appearing in his books of accounts. The assessee needs to prove the following things:

-Proof of Identity of creditor

-Credibility or capacity of a loan creditor to pay or advance the money

- the genuineness of the transaction

If the assessee prima facie proves a transaction then the onus shifts on the department to rebut the same. The A.O can only ask for the evidence of the cash credit or the loans which have been taken or given in the relevant previous year and not about those appearing from preceding years.

44AD section says there is no need to keep or maintain book of accounts if the profit is calculated at a rate greater than on qual to 8% of gross recipt.

Then how can we produce book of records if AO asks later.

PLEASE  READ  CASE  CAREFULLY  AND  THEN  ANSWER...........

Mr. Ntin garg  please  don't  fire  randomly...........

YES, YOUR FIRM CAN FILE RETURN U/S 44AD. IF YOUR PROFIT EXCEEDS 8% THEN NO REQUIREMENT FOR MAINTAIN BOOKS OF ACCOUNTS.

SECTION 234 B AND 234C ARE NOT APPLICABLE FOR 44AD.

FOR KIND INFORMAATION IF RETURN FILED U/S 44AD WITH DECLARING INCOME @ 8% OR ABOVE THEN IT DEPARTMENT WILL NOT SELECT YOUR CASE FOR SCRUTINY........

READ SECTION CAREFULLY MR. NITIN GARG...........

MR. VIJESH YOUR CONCEPT IS RIGHT.....