Proprietorship business closing - which ITR to file

mere no business transaction does not indicate closeure, 

collect data about neutralization of balance sheet of business, i.e no debtors/credits/ assets/liabilities, 

even recomended to file ITR4, as some of previous due payments must been received by him in preceeding year. 

ITR1 is for salaried only, in case of shut off business in last years he has to file ITR2 ( strictly no business income)

Even if no transcations wer made bt still for AY 11-12 u need to file ITR-4 as correctly answered by US SHARMA

About ITR agree with above.

and 

About Audit, is not required as provisions of 44AB Audit requires only  Tournover crossed Rs.60lakhs.

in case of profession Gross receipt is exceed Rs. 15lakhs. for the AY 2011-12. 

yes agrreed with all..... though you dont have any transaction you have to file ITR-4... and for partnership firm tax audit limit is 60lakhs..

This was a small time proprietorship run by a senior citizen. Business has effectively closed down for past three years. This was there was ZERO business income.

Only income was FD
 and some pending tax return.

So how does the person effectively get out of filing returns. This senior citizen's income is not even in the taxable bracket.