Section 44AB

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CA CS Akashdeep Singh (Querist)
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28 September 2008 If we have income from operation in business is Rs.10 Lac & income from sale of asset is Rs.50 Lac, then is it necessary to get audited u/s 44AB

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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28 September 2008 If the sale is of business asset, then credit has to be given to the block of assets and therefore section 44AB is not applicable in this case in my opinion.

CA CS Akashdeep Singh

CA CS Akashdeep Singh (Querist)
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28 September 2008 Sec 44AB apply if there is gross receipts more than 40 Lac, according to me whatever you received from your business is gross receipt, i think receipts from sale of asset also include in gross receipt

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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29 September 2008 Since the emphasis is carrying on business, and the sale of machinery not being a business receipt and is of casual nature assessable in a different head of income, I think there is merit in holding this as a non-trading receipt. Other views are invited.

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