i would like to draw attention toward revision test paper issued by ICAI for PCC of Nov 2011. the Q No. 13 which is the calculation of total income of HUF the quesion say that huf representing retail trading which amount to Rs.58 lack turnover and again another business of civil construction of which turnover is Rs,55 lack for the AY 2011-12
the question solved u/s 44AD and take 8% of both turnover.
whether it is defeated or not the section U/s 44AB for audit which exceed the turnover Rs.60 if combine the turnover.
01 December 2011
Section 44AB:- clause(d)carrying on the business shall, if the profits and gains from the business are deemed to be the profits and gains of such person under section 44AD and he has claimed such income to be lower than the profits and gains so deemed to be the profits and gains of his business and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year,]
Section 44AB excludes from its coverage business covered in section 44AD.
There may be difference of opinion between the various author, whether turnover of all the business should be taken together, or individual business for section 44AD, since 44AD specifies that turnover should not exceed 60lakhs.
However considering the pre amended section 44AD, each business should be treated as seperate business.
Since it is newly formed section case law will not be availaible.
CAclubindia
