Tax audit u/s 44ab(a)

This query is : Resolved

Ishaan (Querist)
Follow

21 October 2014 My question is if any assessee's turnover does not exceed Rs.1 crore in the present previous year but exceeded Rs. 1 crore in the preceeding previous year when he had got his Tax Audit done u/s 44 AB(a), does the assessee need to get his Tax Audit done during this previous year?

Because Section 44AB reads as under:
"Audit of accounts of certain persons carrying on business or profession”. Every person, --
(a) carrying on business shall, if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds one crore rupees* in any previous year;

What is the implication of "any previous year"? Does it mean that if the turnover exceeds Rs. 1 crore during any previous year during the life of business then Tax Audit has to be done throughout the life of the business?

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

21 October 2014 the section was specifically amended to replace "previous year" with "any previous year."

so it does mean that once the audit becomes applicable, it becomes applicable for life. Though agreed that it does look absurd.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now