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Voluntary tax audit by client

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This query is : Resolved

ROOP A RAJANI (Querist)

29 August 2011 1) If the client insists on tax audit voluntarily, i.e, out of precaution u/s 44 AB , the firm is investor in real estate/ plots /lands , the amount invested in lands /plots is more than 6000000/-,and the amount is contributed by the partners.
whether the above audit will be included in the limits specified by ICAI.

2) For inclusion in the Tax audit ambit , if the purchases of client are more than 6000000, but sales are less than 6000000, than whether the tax audit u/s 44AB is applicable ?
and in above point 2, if irrespective of provisions 44AB , client goes for tax audit ,
whether that audit will be covered in the limit of 45 tax audits by ICAI.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

29 August 2011 1) Audit of accounts u/s 44AB can't be done on a precautionary measure because the law doesn't mandate so. Therefore, question of inclusion with in ICAI audit limits becomes redundant.
2) 44AB audit limit is concerned with the turnover /sales/ gross receipts. Threshold limit therein is not connected to purchases.

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