Notice u/s 143(2) for detailed assessment

This is your first notice. At this moment, just submit a computation of Income. AO will share a detailed questionnaire later. 

Very interesting though that they have issued a notice for 44AD case. 

I have also received same notice where TDS deudcted u/s 194J and we filed return in 44ad as business was in nature of "Other services n.e.s" Business code selected was 16019. 

How to response on this ? 

same as above and then wait for detailed questionnaire. engage a CA if required. 

Now they are asking for P/L and B/S u./s 142(1). Is it valid to ask for financial statement when return was filed u/s 44AD.

• Is it valid for the AO to ask? The AO can issue a notice under Section 142(1) seeking details/reconciliation of turnover, but cannot penalize an assessee solely for not having audited/formal P&L and Balance Sheets if Section 44AD applies.

• Recommended Action: Submit a detailed income computation, matching bank statements, and reconciliation with Form 26AS/AIS, accompanied by a polite submission letter clarifying the 44AD status.

Section 44AD does not require the assessee to maintain books under section 44AA, provided the conditions for presumptive taxation are met. A notice under section 143(2) can nevertheless lead to scrutiny of the return; it does not, by itself, mean that detailed books must be created. The notice should be read with any accompanying questionnaire or portal task to identify the return items selected for verification.

• Respond within the stated time rather than only asking for clarification. Explain that income was returned under section 44AD and detailed books were not maintained on that basis; ask the AO to identify any specific item or evidence required.
• Submit relevant material available for the transactions reported—such as bank statements, sales or turnover summaries, invoices/bills, GST returns, Form 26AS/AIS information, and evidence supporting deductions or other income, as applicable. Reconcile these to the turnover and income in the return; do not create or present reconstructed books as contemporaneous records.
• The AO may seek information or documents relevant to scrutiny and may require accounts or documents under applicable assessment powers. Section 44AD’s books exemption is not a blanket exemption from producing available evidence or responding to a lawful, specific requisition. If books or financial statements are requested, ask for the precise basis and scope, and respond accordingly.
• Check whether the assessee satisfies section 44AD’s eligibility and turnover conditions, and whether the return declared at least the applicable presumptive rate. The answer can differ if the assessee is ineligible, has opted out in circumstances attracting section 44AD(4), or the notice contains a specific adverse issue.

A section 44AD scrutiny response should clearly reconcile reported turnover, presumptive income and available third-party records. Manual collation across bank, GST and tax records can be difficult; automation reduces repetitive work while professional judgment remains in control. At Jir AI, our 2,000+ AI agents and 650+ integrations streamline GST, ITR, TDS, TCS and other compliance workflows, helping reduce manual workload by up to 70%. For support with compliance workflows, connect with us on WhatsApp: https://wa.me/message/3HVOZ7HIY4ESC1.