44AB Case

no

audit never

any reference book for this pls???

If the sales return is well within the period of 6 months it will be treated as sales of Rs. 3800000/-. We have to take references from other laws if it is not clear from the same Act. Also in case of sales returns the conditions of comodities returned should be checked wether it is returnable or not? It might be possible that the scrap is returned and shown to avoid tax audit U/s. 44AB

No, the assessee will not be liable for the tax audit because the net sales should be greater that or equal to Rs.40 lakhs. In the above case as per sec.44AB(a) if the total sales or tirnover exceeds Rs. 40 lakhs in any previous year then the assessee shall be liable for tax audit.

sales refers to sales net of returns hence it does not cross the 40K mark hence no audit.