Section 44AB

No It is applicable only if the limit of 40 lacs is crossed in subsequent yr also..

Yes the applicablity of section 44AB applies when the receipts exceed the limit of 40 lakhs in the previous year. It is does not matter that the limit exceed in one and not exceed in the subsquent year.

 BUT Section 44AB Reads - Every person

 a) Carrying on business shall, if his total sales, turnover or gross reciepts, as the case may be,in business exceed or exceeds forty lakhs rupees in any previous year.

Now for example if in financial year 2005-06 44AB is applicable to a firm , then in 2006-07 will it be applicable even though in 2006-07 turnover is less than 40Lakhs. Because, Section says in any previous year. Please clarify ..
 

Mr Piyush plz read the law in the spirit of of its intention of making it compulsory for a person whose gross reciepts exceeds Rs 40 lacs in any P/y.

Here the meaning of  "any previous year" means the prev yr in which it is to be assessed whether he is liable to get his accounts audited and that is to be found out every P/y independently.

 in case of a person practising the profession of medicine, if his gross receipts amount to Rs.38 lakhs and income from sale of contact lens is rs.3 lakhs, will he cum under d net of 44AB?

yes