As per 44AD
"5) Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee who claims that his profits and gains from the eligible business are lower than the profits and gains specified in sub-section (1) and whose total income exceeds the maximum amount which is not chargeable to income-tax, shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA and get them audited and furnish a report of such audit as required under section 44AB."
So as per act it appears that if a 44AD return is claiming loss then it need to get it's books audited. Even ICAI Guidance notes on Tax audit say that if total income does not exceeded basic exemtion limit the books need not be audited.
However IT Dept is sending notice u/s 139(9) claiming that the returns filed in case of loss are defective because they are not audited u/s 44AB
So is tax audit requited for a firm which has claimed a loss (total income being less than basic exemtion of '0') in a return filed u/s 44AD?
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