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2020 (9) TMI 291 - AT - Income TaxRevision u/s 263 - TDS u/s 194A - non deduction of tds on such interest expenses - provisions of section 44AB applicability on assessee - TDS liability where assessee is liable to get its accounts audited - HELD THAT:- In the case of a person carrying on business, if the total sales, turnover or gross receipt in business in the previous year relevant to the assessment year exceeds ₹ 1 crore, then he is covered by the provisions of compulsory audit u/s 44AB. Even in a case of an individual carrying on business as a sole proprietor, it is necessary 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, would not form part of “gross receipts in business” for purposes of section 44AB. Dividends on shares except in the case of an assessee dealing in shares, Income by way of interest unless assessable as business income and Share of profit of a partner of a firm in the total income of the firm excluded from his total income u/s 10(2A) once, the above items which appear in the capital account of the appellant are excluded, then the gross receipts from business carried on by it shall not exceed the monetary limits specified u/s 44AB during the financial year 2013-14 relevant to the assessment year 2014-15. As a consequence, the appellant would not be liable to deduct tax u/s 194A - we set aside the order u/s 263 passed by the Pr. CIT. - Decided in favour of assessee.
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