24th August, 2012 The Assistant Commissioner of Income Tax 20(2), Piramal Chambers, 6th Floor, Lalbaug, Parel,

Mumbai -400 012

Dear Sir, Ref : Shri Bismil Md.Hakimulla Rais Ahmad (PAN AFCPB7548D) / Assessment year 2010-11 Sub : Notice U/s 142(1) of IT Act,1961 dated 25th July, 2012 / No. ACIT 20(2)/scr/143(3)/2012-13 received on 1st August, 2012

With reference to the above and on behalf of the subject assessee, we submit as under : (1) The complete return of income for the AY 2010-11 alongwith the requisite annexures were submitted with your office on (2) Response to your questionnaire is given below :

PART A (1) Overview of business, types of parties involved, process and steps, gestational period : Overview of nature of business : The Assessee is engaged in the business of Construction, Property developers and execution of Motion Pictures (Theatre business). The construction business is carried on under the name and style of R S Associates, R S Property Developers and R S Builders & Developers. During the AY 2010-11 the on going project in the construction business was Rassaz Castle. The project being executed by R S Associates. In M/s R S Property Developers, all the projects were completed and there were unsold stocks. This concern is also engaged in the business of trading of shops, flats etc. In R S Builders & Developers there is only one project located at Oshiwara, Andheri West, Mumbai 53 This project is in the preliminary stage and due to certain statutory compliances viz., CRZ formality, the project could not be started till date. Expenses incurred on the project are capitalized. The assessee is also the proprietor of Rassaz which is engaged in the Theatre business. Types of parties involved : For the construction and property development business, the assessee deals with land-owners (seller of land and / or development rights), suppliers of raw materials, civil contractors, labour, architects, flat buyers (public at large). In the theatre business the assessee deals with the public at large.

Steps involved : CONSTRUCTION BUSINESS : (i) Land is purchased from the land owners on principal to principal basis. Alternatively, development rights over land are obtained. (ii) Approvals are obtained from the requisite statutory authorities (iii) Civil Contractor and other service contractors for construction of building are appointed to carry out the construction as per approved plan (iv) Purchase of raw materials from the approved raw material suppliers (v) Flats are booked by the prospective buyers (vi) On completion of building, possession is handed over to the respective flat owners Gestational period : The gestational period would vary from project to project. The average period generally ranges from 5 7 years. (2) Business activities carried on and status of activities undertaken in the earlier years : Please refer to our response under the heading Overview of nature of business under point no.1 above.

(3) Details of discontinued business etc. None (4) Activities carried out in different segments of business : Please refer to our response under the heading Overview of nature of business under point no.1 above. (5) Addresses of office, principal place of business, branches in India or outside : Please refer to ANNEXURE 1 THERE HAS BEEN NO CHANGE IN THE OFFICE ADDRESS AFTER THE FILING OF RETURN (6) Details of Sister Concern / Related Entities : Please refer to ANNEXURE 2 (7) Premises where books of accounts are kept : Please refer to ANNEXURE 3 (8) Subsidiary books / records maintained and whether verified / reported to auditor: Yes, the subsidiary books / records maintained have been verified by the Auditor. The petty cash book has been verified on a random basis. Please refer to ANNEXURE 4

PART B (9) Details of bank accounts including FD : Please refer to ANNEXURE 5

(10) Details of unsecured loans / deposits taken during the year including those squared up : Please refer to ANNEXURE 6 (11) Details of secured loans : Please refer to ANNEXURE 7 (12) Bank reconciliation : Please refer to attached Reconciliation with copy of Bank Statement A/c. (13) Loans, advances and deposits given including accounts squared up during the year : Please refer to ANNEXURE 8 (14) Details of money advanced free of interest : Please refer to ANNEXURE 8 ( Above Point No. 13) (15) Whether interest on term loan was capitalized during the year : Not applicable (16) Details of debtors and creditors exceeding Rs.50,000/- : Please refer to ANNEXURE 9 (17) Details of creditors or loan outstanding for more than 3 years : Please refer to ANNEXURE 10

PART C (1) Details of acquisition of fixed assets during the year : Please refer to ANNEXURE 11 (2) If cost of an asset has been met by the Central Government or State Government or any authority or any other person in the form of subsidy, grant or reimbursement : Not applicable (3) In case of assets acquired after 01.03.1944, claim of credit made and allowed under Central Excise Rule, 1944 : Not applicable (4) Details of depreciable assets transferred during the year : There is no depreciable assets transferred during the year. (5) Details of other investment made / assets acquired during the year exceeding Rs.1 lac : There is other investment made / assets acquired during the year exceeding Rs.1 lac (6) Ratios of current liabilities to current assets and total liabilities to total assets for 4 years : Please refer to Annexure 12

PART D (1) Gross profit / net profit margins : Please refer to Annexure 12 (2) Ratios for last 5 years : Considering the nature of Business of assesse it is not possible to give ratio given in Part D point No 2(i) to (vii) (3) Details of Stock : The stock of raw materials received is immediately sent to the project and the cost thereof is capitalized. Hence, details of opening stock, purchase, sale and closing stock is not applicable for the business of the assessee. (4) Quantitative details of closing stock : In the light of response to point no.3 above, quantitative details of closing stock is not applicable. (5) Method of valuation of closing stock : Not applicable (6) Details of parties from whom purchases exceeding Rs.50,000/- have been made : Please refer to Annexure 9 (Point No. 16 above) (7) Details of major expenses debited to Profit and Loss Account alongwith comparative analysis for previous 2 years : Please refer to Annexure 15 (8) Whether expenses have been claimed wherein the benefits extend beyond the AY under consideration : Not applicable (9) Whether preliminary expenses have been claimed during the year : Not applicable (10) Details of debts claimed as bad debts : There is no bed debts claimed During the year. (11) Details of expense claimed as deduction u/s 37 of the Income Tax Act, 1961 : There is no expense claimed as deduction u/s 37 of the Income Tax Act, 1961. (12) Details of persons to whom payments were made by way of commission, brokerage or incentives: Please refer to Annexure 16 (13) Cash payments debited during the year exceeding Rs.20,000/- : None

(14) Details of transactions involving cash payments between Rs.15,000 Rs.20,000/None PART E (1) The complete set of income tax return for the AY 2010-11 along with the necessary annexures (computation of income, balance sheet, profit and loss account, schedules) and 26AS statement as a proof for all prepaid taxes (i.e. TDS, Advance Tax and S.A. Tax paid) has already been submitted with your office on . The same are being re-submitted now. (2) Details of income tax assessment for the earlier 5 years : Please refer to Annexure 23 (3) Details of tax free income earned during the year : The Assessee has earned the following tax exempted income during the AY 2010-11 (i) Interest from Public Provident Fund Rs.29,341/(ii) Dividend u/s 10(34) Rs.65,443/TOTAL Rs.94,784/(4) Details of receipts / benefits in lieu of any loss, expenditure or trading liability : Not applicable (5) Details of payment made to persons covered u/s 40A(2)b : Please refer to Annexure 24 (6) Details of tax deducted at source and the remittance thereof to the Government : Please refer to Annexure 25 (7) Details of foreign transactions : None (8) Details of profits earned or losses incurred due to foreign exchange : None (9) Details of statutory payments covered by 43B : Please refer to Annexure 26 (10) Details with respect to employees contribution to provident fund, superannuation fund etc. : Not applicable (11) Benefits received in the form of duty drawback, duty of custom or central excise repaid etc. Not applicable (12) Details of brought forward losses and unabsorbed depreciation of earlier years : Not applicable

(13) Have any losses been reduced due to any addition in scrutiny or appeal : Not applicable PART F (1) Details of family members: Please refer to Annexure 27 (2) Details with respect to member of family and studying: Please refer to Annexure 28 (3) Details of bank account maintained by members of family with transactions exceeding Rs.50, 000/Please refer to Annexure 29 (4) Investment in movable and immovable properties exceeding Rs.50, 000/- alongwith location of property: Please refer to Annexure 30 (5) Details of gifts received / given during the year: None (6) Month-wise break-up of household expenses: Please refer to Annexure 31 (7) Foreign travel during the year: As per Annexure 32 (8) Statement of wealth for the AY 2010-11: Annexure 33 (9) Details of capital gains: Please refer to the computation of income annexed hereto. We trust the above details meet your requirements. Thanking you, Yours truly For G P Sharma & Co.

Chartered Accountant