Assessment proceedings - details required by AO in notice

The intention of AO is to find out approx worth and living standard of of U and Ur family. On the basis of these informations he will make some other queries related to expenses which indicate how much income normally he has to overcome these expenses and compare such income form ITR filed. such case is of scruitny.

Before submitting any detail please be confirm about the genuinness of information and whether it was part of your ITR (Directly or Indirectly)

Your client has received notice u/s. 142(1) (scrutiny assessment).

The AO asks for information based on return of income filed so as to complete the assessment u/s. 143(3). He may make additions to your income based on the ingenuiness of the information furnished

 Dear Chintan,

as per my opininon, the intention of A.O. is to

1. Know the actual position abt the godown owned by party & to verify whether proper rent is paid , if any rented.

2. Proper TDS Deduction on rent paid for rented godown.

3. To cross tally the sales as shown by the client in the return with the sales ledger.

4. to cross tally that proper Vat is deposited or not.

5. Confirmation from debtors are generally required to know the balance shown in your books is tallied with the debtors book.

6. Bank accounts details alongwith their reconciliation are normally demanded by A.O.

regards,

ratan

thanks a lot friends,... I owe a lot to ya all and dis forum!!!!!!

Ok... i remember now at my intial stage of articled period my senior faced a similar situtation.. he was given with a questionnare in which the AO asked how many children for the assessee.. i still couldnt find any reason for that my friends..

Balakrishnan

Probably it may be to check whether the amount of withdrawals is sufficient. Low withdrawals tend to create suspicion in the mind of the AO. It implies having income from undisclosed sources not shown in the Return.