Presumptive income under 44ADA/44AD

If any income is declared u/s. 44AD/ADA of the act, assessee is liable to provide turnover/receipts only. No question arises for any actual profit.

@ Vivek ,

Income tax dept requires minimum profit % on turnover and they don't look at the actual profit since accounting books are not available

But I have a query that whether A.O. can issue show cause notice to the assessee stating that your actual income and the shown under ITR under 44ADA has variance so why it should not be considered as unexplained investments, so whether A.O has power to initiate proceedings against assesse kindly clarify me on the basis of conclusive evidence

Let the 7 likes may clarify...