Section 142(1)

You need to first explain him the source of such deposit.

Then you must file return of income by showing such income and paying the required tax, interest and penalty.

Then he would charge penalty for not getting the books of accounts audited and maintaining the books of accounts so you must reply that as well.

In short hire a proper professional to guide you as it's not an easy thing since you haven't filed the return of income.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Hi,

Assessing office can levy penalty for not undertaking audit, non filing of return and penalty for concealment of income.

You should take a professional help who can  guide you after going through the entire situation

Hi,

- Firstly, file the ITR against notice u/s 142(1) on the basis of the audited balance sheet if you want to show the net profit less than 6%/8%.  Afterwards, AO will verify the total income declared and proceed for penalty for not filing Audit report which is Rs.76,000. Apart from it, tax payable along with interest, penalty for not filing the ITR, penalty for concealment of income will be applicable.

Thanks

Dear Sir,

Hope you are doing well !!

It is advisable to take the help of local CA for said situation.

Hello,

You need to file your return for F.Y. 2016-17. Tax would be payable including interest and penalty.

AO would levy a penalty for not filing the return and audit report and penalty for concealment of income could also be levied.

Regards,

CA Hunny Badlani