Tax audit or not

Respected Sir

one of my Client was doing subcontract work and he is received total gross receipts Rs. 59,52,000/- and he was paid Rs. 5,00,000 for Security deposit because Sub-Contract work purpose, and he was received interest on Security deposit Rs. 60,000/- @ 12% P.A., so total Gross Receipts during the F.Y. 11-12 Rs. 60,12,000, at this situation Interest received on Security deposit is Capital a/c Credit or P&L A/c Credit. my Query is He is covered u/s 44AB or 44AD please tell

Thanks in advance