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)

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)

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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