Tax audit

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 September 2011 Mr.A :- Father
Mr.B:- Son

Mr.A was carrying on business as proprietor of a Firm.He died on 20.10.2010.At that time the turnover of his business was Rs.50,00,000/-.P/L & B/s Was prepared on 20.10.2010.

Mr.B ( A's son)took over the same business of his Father from 21.10.2010 and continued as proprietor of the same business.The turnover from 21.10.2010 to 31.03.2011 was Rs.40,00,000/-.B is legal heir of A.P/L & B/S was prepared from 21.10.2010 to 31.03.2011.

My query is:-
1.For Tax Audit purpose what will be the turnover.
a)Rs.50 Lakhs & Rs.40 Lakhs to be taken separately.(The assessee does not wish 8% and get his accounts auited)

b)Should it be Rs.90 Lakhs and one P/L & B/S to be prepared?

c) If point "a" is true can two separate audit report be issued?

Need Expert advice...Very Ugent

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)

24 September 2011 As per my knowledge both the turnovers are separate the return of A would be file by B as representative assessee and all the signatures has to be made by B on behalf of A as the representative assessee and the B has file his income tax return as huf status because the income arises from father's capital. In your case the assessee doesn't like to offer his income as per section 44AD so you can done tax audit for both separately.
OM SAI SRI SAI JAI JAI SAI

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