My assesse have received notice u/s 142(1) for furnishing information/documents for return submitted u/s 44AD ,declaring income on basis of gross receipts Rs.3618290/- as per return of income for A.Y.2011-12
But as per bank deposits Rs.4764650/- there is discrepancy of Rs.1146360/- Assessing officer demands all purchases purchase & sales bills. otherwise officer treat this discrepancy as unexplained investment u.s 69
Taxpayer Alerted to Income Discrepancy; Must Prove Prior Credit Sales or Face Unexplained Investment under Section 69. A taxpayer received a notice under section 142(1) regarding discrepancies between declared income and bank deposits for the assessment year 2011-12. The declared income based on gross receipts was Rs. 3,618,290, but bank deposits totaled Rs. 4,764,650, showing a discrepancy of Rs. 1,146,360. The assessing officer requested purchase and sales bills, warning that failure to provide them would result in treating the discrepancy as unexplained investment under section 69. The suggested solution was to prove that some bank receipts relate to prior credit sales or file a revised return and pay any due taxes to avoid complications. (AI Summary)
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