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ITR submitted u/s 44AD

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Lila

Job

463 Points Posted on 08 August 2025

We have submitted ITR on presumptive income basis, without P/L and B/S. No accounts were prepared. Now have received notice u/s 142(1) asking for P/L and B/S. My query is:

1. Is it valid to ask for financials via notice u/s 142(1), when the ITR was filed u/s 44AD
2. Does it mean that now we have to prepare P/L and B/S and submit.

Replies (2)

Quick Summary

If you've filed your Income Tax Return (ITR) under Section 44AD on a presumptive income basis without preparing Profit & Loss (P&L) and Balance Sheet, an Assessing Officer (AO) can still issue a notice under Section 142(1) requesting these documents. While tax audit is exempted under 44AD, the AO has the power to seek any information necessary for assessment. This means you may need to prepare and submit the requested financials if the AO deems it necessary for verification of income or turnover.

ajaz ul haque

partner

87 Points Posted on 08 August 2025

yeh valid hai. Section 142(1) ek inquiry notice hai jo Assessing Officer ko yeh power deta hai ki wo assessee se koi bhi details, accounts, documents ya information maang sake jo assessment ko complete karne ke liye zaruri ho.

Chahe aapne ITR 44AD mein presumptive income pe file ki ho (jahan pe detailed books maintain karna mandatory nahi hai), lekin agar officer ko lage ki income ya turnover ka verification karna zaruri hai, toh wo P&L aur Balance Sheet maang sakte hain.