Tax audit

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Querist : Anonymous

Querist : Anonymous (Querist)

28 June 2014 we have 2 business business 1 is wholesale in
nature profit margin 5% turnover 7136120 NP 356806 while business 2 is of retail in nature profit margin 30% around, turnover 1016150 NP 295384 we have filled itr 4S turnover 8152270 income decleared 652190.Now
case is under 143 AO is on the opinion that
since business 1 profit is below sec 44AD limit hence tax audit should have been done
and using 4S is wrong...........

Nikhil Kaushik

Nikhil Kaushik (Expert)
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28 June 2014 AO is correct...total turnover and total profit ratio should be considered for filing return under 44AD.

Querist : Anonymous

Querist : Anonymous (Querist)

28 June 2014 total turnover business 1 + 2 decleared 8152270 and profit @ 8% 652190 than where is the fault ?

Rupesh Jain

Rupesh Jain (Expert)
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30 June 2014 AO see the business as separate unit then your profit isn less then 8% u./s 44AD

Querist : Anonymous

Querist : Anonymous (Querist)

02 July 2014 Rupesh is right ! AO is on the same opinion, now my point is what are meaning of separate unit ? the proprietor is same the business place is same, moreover in us 44AD the word total turnover or gross receipts is written than where is the fault ? Can anybody clear the doubt ?

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