Is he liable for tax audit?

swohra (none) (537 Points)

21 April 2010  

Dear Members,

My client who is a Builder & Developer has sold some Flats in a housing project but he is still debiting Bank a/c and crediting the customer & all the expenses are debiting  in the WIP A/c i.e. no Trading & P&L a/c.and not booking any profit. He explain that as I am eligible to take benifit of Sec 80IB i.e. 100% expention then I will book the whole profit in last year i.e. in future.

Is his statement is correct? If not than on which basis he is liable to tax audit?

Thanks in advance..