Abhay Sakaria ([Practicing C.A.] [C.S. Final]) (283 Points)
17 May 2013Is Tax Audit applicable if turnover from Speculated Business cross the limit specified U/S 44AB?
Prashanth S K
(Practice)
(148 Points)
Replied 17 May 2013
If the assessee carries on business which are speculative in nature and the same exceeds the limit specified u/s 44AB tax audit will be applicable. Business refers to any activity carried on with a profit motive from various case laws. Also the definition of business is an inclusive definition. Speculative transactions are carried out only for profit motive without any doubt. Hence 44AB will be applicable.
Devendra
(Chartered Accountant)
(4775 Points)
Replied 17 May 2013
When either the sale or purchase of shares exceeds the prescribed limit of turnover, then Tax Audit u/s 44AB shall be applicable.
Whereas in case of Intra-day and F&O transactions the net income earned shall be considered for determining the Turnover for the applicablility of section 44AB.
Regards,
Devendra Kulkarni
Abhay Sakaria
([Practicing C.A.] [C.S. Final])
(283 Points)
Replied 17 May 2013
@ Devendra
In my practical case, aggregate turnover in commodities transactions are around 14 crore and profit is upto 50 lacs.
So whether 44AB applicable?
nancy bawa
(ARTICLE)
(27 Points)
Replied 21 May 2014
If a person is a proprietor of a normal business & such business is auditable under the rules the of income tax. Is the speculative Business of that person also auditable even if the turnover of the speculative is below the minimum limit required to make the business auditable in normal conditions.
CAclubindia
