audit limit

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C.A Chirag (Querist)
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29 June 2011 I am engaged in daily intra day trading. my total sales will be RS 1 crore but my speculation profit+ loss is only Rs 2 lacs during the year whether i should liable for audit u/s 44AB & not plz reply

CA KRISHNA KUMAR DARUKA

CA KRISHNA KUMAR DARUKA (Expert)
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29 June 2011 Intra day trading is a speculative business and since the turnover is more than 60 lakhs, audit under section 44AB is applicable.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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29 June 2011 Krishna Ji

ICAI says Rs.1 crore should not be considered. Then the absolute value of profit and loss should be the turnover based on ITAT decisions.

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CA KRISHNA KUMAR DARUKA

CA KRISHNA KUMAR DARUKA (Expert)
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29 June 2011 Thanks a lot

C.A Chirag

C.A Chirag (Querist)
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29 June 2011 Sir, Can u tell me ITAT decision name so i can refer it

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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29 June 2011 1) Babu lal Enterprises Vs. ACIT (ITA N0. 6031/mum/1996).
2)Growmore Exports v ACIT. 78 ITD 95.