TaxTMI 
TaxTMI 
2025 (2) TMI 1918
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....t year 2022-23. 2. In this appeal, the assessee has raised the following grounds: - "1. On the facts and circumstances of the case and in law, the order passed by the AO is bad in law. 2. On the facts and circumstances of the case and in law, the AO erred in holding that section 44AB of the act is applicable to the Assessee." 3. The sole grievance of the assessee is against the rejection of its return of income under section 139(9) on the basis that the books of accounts were not audited under section 44AB of the Act by the assessee even though the assessee has claimed income under the head "Profits and Gains of Business or Profession" of more than INR 1 crore. 4. The brief facts of the case are that the assessee ....
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....earing, the learned Authorised Representative ("learned AR"), by referring to the financial statement of the assessee, forming part of the paper book, submitted that the revenue from operations during the year under consideration was Nil and, therefore, the assessee did not get his accounts audited as per the provisions of section 44AB of the Act. The learned AR further submitted that since during the year under consideration, the interest expenses amounting to INR 160,60,99,934 of earlier years payable to the lenders were waived, the impact of the same was given in the books by reversing these interest expenses and was disclosed as "Other Income" in the audited financials. 6. On the other hand, the learned Departmental Representative ve....
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....urnover", or "gross receipts", for the purpose of section 44AB of the Act. 8. In order to decide the issue at hand, it is firstly relevant to note the provisions of section 44AB of the Act, which requires the assessee, inter-alia, carrying on business to get its account audited. Section 44AB(a) of the Act, which deals with an audit of accounts of the person carrying on business, reads as follows: - "Every person,- (a) carrying on business shall, if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds one crore rupees in any previous year : Provided that in the case of a person whose- (a) aggregate of all amounts received including amount received for sales, tur....
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....see in a trading business. Further, in Growmore Exports Ltd. v/s ACIT, reported in [2001] 78 ITD 95 (Mumbai), the coordinate bench of the Tribunal, observed as follows:- "8. .....In general, turnover is meant to be the sale proceeds of the goods sold. In other words, commercially it would mean the amount of money turned over or drawn in a business, in a given time (page 1923 of The Law Lexicon by P. Ramanatha Aiyar - 1997 edition). Since the term "turnover" is not specifically defined in the Act, nor specially for the purpose of section 44AB, its meaning should be taken as commercially and commonly understood - which we have already discussed above." 10. Thus, the Courts have ascribed similar meaning to the terms "total sales" a....