Taxauditu/s 44ab

This query is : Resolved

ROOP A RAJANI (Querist)
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07 September 2011 During the financial year 2010 - 2011 , one partnership firm have purchased the plots / land for development of residential and commercial complexes.the amount required for purchase of plots/ land was fully contributed by the partners as their capital, as at 31/03/2011 and is more than 60 lacs, there is no other activity during the year.the plots/ land is shown as stock in hand for development.
whether Tax Audit U/S 44 AB will be applicable for the financial year 2010-11

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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07 September 2011 If there is no sale of plots/land or it is not more than 60 lacks then Tax audit u/s 44AB not applicable.
PLEASE GO THROUGH THE SECTION IT CLEARLY GIVES ON WHICH SITUATION THE TAX AUDIT APPLIES IT SAYS ONLY ABOUT SALES(TURNOVER) OR RECEIPTS NOT FOR PURCHASES OR CAPITAL INTRODUCED. I THINK U COULD NOT UNDERSTAND THAT PLEASE GO THROUGH IF U NOT GET CLARITY PLEASE APPROACH YOUR SENIORS AND GET EXPLANATION FROM THEM. PLEASE DO SO CLARIFICATION IS VERY IMPORTANT TO A CA TO HIS PROFESSIONAL SUCSSES. I AM SUGGESTING YOU BECAUSE SO MANY ARE ASKING QUESTION RELATED TO TAX AUDIT WHICH ALSO RELATED TO TURNOVER. THANK YOU
OM SAI SRI SAI JAI JAI SAI

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