Applicability of tax audit

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HIMANSHU MEHTA (Querist)
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06 July 2013 if a partnership firm's turnover/gross receipt does not exceed 1cr and has a book loss, whether tax audit is applicable? & what if after deduction under 14A the firm has a profit?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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06 July 2013 IN ALL THE CASES ABOVE U MENTIONED STILL Tax audit is applicable.

HIMANSHU MEHTA

HIMANSHU MEHTA (Querist)
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11 July 2013 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.

as per this provision if an assessee has loss, then his income doesn't exceed maximum amount chargeable to tax, so i think in case of loss tax audit is not applicable.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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11 July 2013 since it is a partnership firm it needs to get audited.

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