Suppose a business (not excluded from section 44AD) files ITR based on presumptive income declaring profit at 8% but actual profits are to the tune of 90% due the nature of the business. Is the money with the proprietor considered white money? Have there been any judgements related to such a situation.
For example on a turnover of 1 cr, the actual money leftover after expenditure is approximately 90 lakh. But as it is a business eligible for section 44AD, ITR is filed under section 44AD (no books maintained) and tax is paid based on 8 lakh income. Is there any violation in this case (assuming the business is not of the excluded category and not a profession)? The proprietor uses that money to buy a property, is that white money?
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