Income tax demand for cash deposit

This discussion addresses an income tax demand notice received for a significant cash deposit made in FY 17-18, where returns were not initially filed due to the business being in its first year. The core question is whether a tax audit report is required if the entire deposit is treated as business income, exceeding the £1 crore turnover threshold. Advice suggests filing returns under Section 44AD, which may bypass the audit requirement, and recommends consulting a CA for personalised guidance and resolution.