Audit if one has more than one buisness

This query is : Resolved

nitin sardana (Querist)
Follow

11 January 2013 if an assesee has more than one business whether the limit of rs 60 lacks should be applied business wise and not by aggregating the turnover of all the business of the assesse?

JOYAL GEORGE

JOYAL GEORGE (Expert)
Follow

11 January 2013 Dear Nitin,
the limit of 60 lakhs for determining the applicability of Sec 44AB audit is to be reckoned assessee wise.
that means, if a person has more than one business carried out under differnt names, the turnover of all the business should be aggregated for reckoning the turnover limit. however, if the status of the business are different, for eg. one is carried out as proprietary business and other under a partnership firm, such aggregation cannot be done. it is because, partnership firm is a separate person and hence separate assessee under the IT act

nitin sardana

nitin sardana (Querist)
Follow

11 January 2013 sir joyal,but if a assessee has 3 firm ..
one has a turn over of rs 45laks other with 50 lacs and the third one with 65 lacs so all three firms will b audited or the third one ..
from my side i think the firm with 65 laks should be audited and the other two can b finalised under sec 44ad..

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok