Answer

1. F

   Facts

   Without books, the officer can estimate profit reasonably based on turnover data from GST, bank credits or AIS. You can still help by giving whatever records exist.

2. P

   Provisions and law

   • Sec 144, Income-tax Act 1961 (now Sec 271)If you do not file a return or do not comply with notices under Sec 142(1) or 143(2), the officer can assess to the best of judgment after a show-cause notice giving you a date to be heard.
   • Sec 44AD, Income-tax Act 1961 (now Sec 58)A small business can declare presumptive profit of 8% of turnover, or 6% for digital receipts.
3. A

   Analysis

   Gather bank statements, GST returns and any purchase bills to show actual turnover and expenses. If turnover was ₹30,00,000 mostly by digital receipts, offering presumptive profit around 6% is a reasonable basis. Explain the closure date and why records are thin. A fair, documented estimate is better than letting the officer treat all credits as income.

4. C

   Conclusion

   1. 1Collect bank statements and GST returns for the year.
   2. 2Work out turnover from them.
   3. 3Offer a reasonable profit with reasons.
   4. 4Explain the closure and missing books.
   5. 5Reply before the date in the notice.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.