Audit under sec 44ab

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Rupali yadav (Querist)
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29 December 2015 Dear members,

please answer if assessee has 2 bussiness one is trading readymade garments another is trading in property .
in first business he has turnover more than 1.00 crore and in the second business the turnover was less than 1 crore.

in second business he want to disclose income 8% as per sec 44 AD
In first one he want make audited his account under sec 44AB

Please suggest can he do so.

is the limit of turnover applicable assesse wise or independent business wise.

Ankur Singhal

Ankur Singhal (Expert)
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29 December 2015 The Turnover of both the business eill be clubbed.

Rupali yadav

Rupali yadav (Querist)
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29 December 2015 sir please provide basis of your answer

Amol S Joglekar

Amol S Joglekar (Expert)
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29 December 2015 he can do so, but for tax audit purposes, turnover of both the business shall be considered and accordingly tax audited.

Ankur Singhal

Ankur Singhal (Expert)
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29 December 2015 This view is based on ICAI’s Guidance Note on Tax Audit as well as the decision of Honourable High Courts in case of Bajrang Oil Mills (Raj.) 295 ITR 314 and in K. Satish Shetty (Kar.) 310 ITR 366.

But if you want to take advantage of turnover of two business then you must have a strong ground to face the litigation.

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