Tax audit for construction and developers' business

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Shraddha Jani (Querist)

09 January 2012 HEllo Friends ,i wanna ask that there is a construction & developers business..In his accounts only opening WIP and closing WIP seems only and booking deposits received ...but sale has not made ...den in that case TAX AUDIT is applicable ot not?
Please give me proper guidance in this issue...as early as possinle

Ravikant

Ravikant (Expert)

10 January 2012 Tax Audit is not Required. It is applicable only in case of Sale of Building components

Shraddha Jani

Shraddha Jani (Querist)

11 January 2012 Thabk u sir..so its like for advance payment tax audit audit is not require...but can u inform me 1 thing how u found answer of this query mwens via some act or section?..please mention it for my knowledge!!thanks a lot once again

Ravikant

Ravikant (Expert)

11 January 2012 The Value of Work-in-Progress cannot be considered as turnover or gross receipt of the business and it is outside the purview of the meaning of Section 44AB.

CIT v. B.K. Jhala & Associates [1999] 69 ITD 141 (Pune). :-
Value of work-in-progress in case of the assessee engaged in construction of shops / flats would not constitute ‘turnover’ within the meaning of section 44AB.

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