Notice u/s 142(1)

[RASIKLAL RANGANI]

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

[Harish Chander Bhatia]

The only way is to establish that some of the receipts in bank account pertains to preceding previous year against credit sales, otherwise file the revised computation or ITR and pay admitted taxes suo-moto to avoid further complications.

AI Summary

Statutory notice for bank-deposit discrepancy may prompt production of sales and purchase records or revised return. A statutory notice under section 142(1) issued because bank deposits exceed income declared under the presumptive tax regime; the assessing officer demands purchase and sales bills and other documents or will treat the excess as unexplained investment. The record advises either proving that some deposits pertain to an earlier year, producing the requested evidence, or filing a revised computation/return and paying admitted tax to mitigate complications.