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TMI Blog2020 (9) TMI 291X X X X Extracts X X X X X X X X Extracts X X X X ..... ecessary to comply with the provisions of section 44AB only in respect of his business income; it would not be necessary to comply with the provisions of section 44AB in respect of his other income as explained in Ghai Construction v. State of Maharashtra [ 2007 (4) TMI 763 - BOMBAY HIGH COURT ] The term gross receipts is not defined in the Act. It will include all receipts whether in cash or in kind arising from carrying on of the business which will normally be assessable as business income under the Act. The Guidance Note on Tax Audit u/s 44AB of the Income Tax Act, 1961 (Revised 2013 edition), issued by the Institute of Chartered Accountant of India, New Delhi, mentions inter alia that the following items, relevant in the instant case, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 30.10.2016 determining the income at ₹ 27,14,237/-. The Pr. CIT, on perusal of records observed that the assessee has received unsecured loan of ₹ 6,56,48,896/- from various parties and paid interest thereon of ₹ 1,44,59,214/-, whereas no details of tax deducted at source (TDS) on such interest expenses u/s 194A r.w.s. 40(a)(i) are shown in the audit report. In response to the show-cause notice issued u/s 263 of the Act, the assessee filed a reply dated 22.03.2019. However, the Pr. CIT was not convinced with the said reply for the reason that prima facie, the assessee is engaged in the business of finance as he has earned interest income of ₹ 65,51,040/-on his loans and advances, which is almost 65% of his total amo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of ₹ 1,03,59,083/- (₹ 2,46,40,357/- minus opening balance of ₹ 1,42,81,274/-). It consists of remuneration (₹ 14,71,942/-), interest on capital(₹ 11,18,263/-), agricultural income (₹ 9,03,306/-), bank interest (₹ 9,654/-) , dividend (₹ 1,703/-) share of profit (₹ 8,05,577/-), dividend bank (₹ 60,000/-), interest income (₹ 54,32,777/-) and other income (₹ 5,55,860/-). The provisions of section 194A were amended from June 1, 2002 to provide that an individual or a Hindu Divided Family, whose total sales, turnover or gross receipts from the business or profession carried on by him exceed the monetary limits specified u/s 44AB during the financial year immediately preceding ..... X X X X Extracts X X X X X X X X Extracts X X X X
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