Write-Back is not Turnover for Section 44AB Tax Audit: Gujarat HC

Rohtak Panipat Tollway Private Limited Vs Deputy Director of Income Tax (Gujarat High Court) Gujarat High Court has set aside an order by the Deputy Director of Income Tax that had declared the income tax return filed by Rohtak Panipat Tollway Private Limited for the Assessment Year 2022-23 as invalid. The core issue revolved around whether a substantial accounting entry, described as “excess provision written back,” constituted “turnover” or “gross receipts” necessitating a mandatory tax audit under Section 44AB of the Income Tax Act, 1961. The court ruled ...