Cash fiow statement - sec44ad -sec 44aa-

giri (Querist) 21 January 2016 This query is : Resolved
respected sir,
i have filed my return of income under sec 44ad declaring 30 lac gross receipts for ay 2014-15 .now my case is selected for enquiry about cash deposits amounting to rs 20 laks.now the AO asked me to produce cashflow statementfor perticular year .in my opinion as the return is filed under sec -44ad ,there is no need to file cash flow statement which is part of books of occounts to be maitained under sec 44aa. please discuss.
thanking you

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Guest (Expert) 21 January 2016
Convincing of the assessing officer is necessary about genuineness and validity of heavy cash transactions in the account.

giri (Querist) 21 January 2016
respected sir,
i certainly agree with you.i am an advocate,working as tax consultant.
i want to know the actual rule position or whether there is any case law .
thanking you

Guest (Expert) 22 January 2016
Dear Shri Giri,

You are member since 20.04.2014, but your profile does not give any indication about your being an advocate.

Furthermore, if you are an advocate, working as tax consultant, you must also be knowing that due to prescribed limits under sec. 44aa, in has also to keep and maintain such books of account and OTHER DOCUMENTS as may enable the Assessing Officer to compute his total income in accordance with the provisions of this Act.

Besides, you have also not mentioned whether you have got the accounts audited or not, as per the provisions of sec. 44ab.

Moreover, sec.44ad specifically makes a mention of business, the section therefore cannot be applied in case of professionals.

You have also not mentioned any reason, why you don't want to produce the cash flow statement before the assessing officer, as you must have maintained that as part of books of occounts to be maitained under sec 44aa?

In fact, your query does not present any background of the case.