It is true that the assessee is not bound to the provisions of Sec44AA to maintain books of accounts if he’s paying presumptive tax.

However, the said protection is not unconditional since the above fact does not override the AO’s responsibility to scrutinise the T/O attained by the assessee. Therefore, if the assessee is called for scrutiny, the Ao will necessarily go for Best judgement, in the absence of proper books of accounts or other records to confirm his T/O.

If the assessee is not maintaining any books of accounts, he has to maintain atleast some records of the T/o attained. (Eg. Copy of sales vouchers etc.). Once an ‘unfavourable’ best judgement is made, even if the assessee can make an appeal to the CIT(appeals), in this case, it’ll be difficult to obtain a favourable decision from the appeal authority.

Maintenance of proper vouchers will not only help the assessee in scrutiny, but also help to compute the T/O attained by him.

This is my opinion. Correct me if I'm wrong.

thank u sir 4 reply

sir,

wat u mean by    T/O  ????

Turnover!!