Clubbing of Income .

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hitesh kumar dubey (Querist)
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28 July 2009 Hi all , My Question is as follows ..
Suppose after clubing of minor son's PGBP with one of the parent's PGBP, the parent's PGBP shoots upto more than 40 lakhs .

Now in this case Sec 44 AB will be applicable or not ?
If you know any case law(S) then please refer with the answer .
Thanks

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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28 July 2009 Tax audit u/s 44 AB of the Income tax Act,1961 is based on the total sales/turnover/gross receipts of the assessee. Accordingly it has no connection with the PGBP. Therefore, in the cited case, if the tunover etc of the parent is < Rs.40/-/Rs.10/- lakhs,as the case may be, per annum no need to audit the accounts of the parent.