Section 44. Sale by public auction

44. Sale by public auction. —(1) Where movable property is sold by public auction, the price of each lot shall be paid at the time of sale or as soon after as the officer holding the sale directs and in default of payment, the property shall forthwith be resold. (2) On payment of the purchase-money, the officer holding the sale shall grant a certificate specifying the property purchased, the price paid and the name of the purchaser, and the sale shall become absolute. (3) Where the movable property to be sold is a share in goods belonging to the defaulter and a coowner, and two or more persons, of whom one is such co-owner, respectively bid the same sum for such property or for any lot, the bidding shall be deemed to be the bidding of the co-owner. 44. Insurance business .—Notwithstanding anything to the contrary contained in the provisions of this Act relating to the computation of income chargeable under the head "Interest on securities", "Income from house property", "Capital gains" or "Income from other sources", or in section 199 or in 2[section 28 to 43B], the profits and gains of any business of insurance, including any such business carried on by a mutual insurance company or by a co-operative society, shall be computed in accordance with the rules contained in the First Schedule. 3 — [ 44A. Special provision for deduction in the case of trade, professional or similar association. (1) Notwithstanding anything to the contrary contained in this Act, where the amount received during a previous year by any trade, professional or similar association (other than an association or institution referred to in clause (23A) of section 10) from its members, whether by way of subscription or otherwise (not being remuneration received for rendering any specific services to such members) falls short of the expenditure incurred by such association during that previous year (not being expenditure deductible in computing the income under any other provision of this Act and not being in the nature of capital expenditure) solely for the purposes of protection or advancement of the common interests of its members, the amount so fallen short (hereinafter referred to as deficiency) shall, subject to the provisions of this section, be allowed as a deduction in computing the income of the association assessable for the relevant assessment year under the head "Profits and gains of business or profession" and if there is no income assessable under that head or the deficiency allowable exceeds such income, the whole or the balance of the deficiency, as the case may be, shall be allowed as a deduction in computing the income of the association assessable for the relevant assessment year under any other head. (2) In computing the income of the association for the relevant assessment year under sub-section (1), effect shall first be given to any other provision of this Act under which any allowance or loss in respect of any earlier assessment year is carried forward and set off against the income for the relevant assessment year. (3) The amount of deficiency to be allowed as a deduction under this section shall in no case exceed one-half of the total income of the association as computed before making any allowance under this section. (4) This section applies only to that trade, professional or similar association the income of which or any part thereof is not distributed to its members except as grants to any association or institution affiliated to it.] 1. Ins. by Act 7 of 2017, s. 18 (w.e.f. 1-4-2018). 2. Subs. by Act 4 of 1988, s. 126, for "section 28 to 43A" (w.e.f 1-4-1989). 3. Ins. by Act 5 of 1964, s. 11 (w.e.f. 1-4-1964). 1 [44AA. Maintenance of accounts by certain persons carrying on profession or business .—(1) Every person carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or any other profession as is notified by the Board in the Official Gazette shall keep and maintain such books of account and other documents as may enable the[2] [Assessing Officer] to compute his total income in accordance with the provisions of this Act. (2) Every person carrying on business or profession [not being a profession referred to in sub-section (1)] shall,— (i) if his income from business or profession exceeds[3] [one lakh twenty thousand] rupees or his total sales, turnover or gross receipts, as the case may be, in business or profession exceed or exceeds 4[ten lakh] rupees in any one of the three years immediately preceding the previous year; or (ii) where the business or profession is newly set up in any previous year, if his income from business or profession is likely to exceed[3] [one lakh twenty thousand] rupees or his total sales, turnover or gross receipts, as the case may be, in business or profession are or is likely to exceed[4] [ten lakh] rupees,[5] [during such previous year; or (iii) where the profits and gains from the business are deemed to be the profits and gains of the assessee under[6] [section 44AE][7] [or section 44BB or section 44BBB], as the case may be, and the assessee has claimed his income to be lower than the profits or gains so deemed to be the profits and gains of his business, as the case may be, during such[8] [previous year; or]] 9[(iv) where the provisions of sub-section (4) of section 44AD are applicable in his case and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year,] keep and maintain such books of account and other documents as may enable the[2] [Assessing Officer] to compute his total income in accordance with the provisions of this Act. 10[Provided that in the case of a person being an individual or a Hindu undivided family, the provisions of clause (i) and clause (ii) shall have effect, as if for the words "one lakh twenty thousand rupees", the words "two lakh fifty thousand rupees" had been substituted: Provided further that in the case of a person being an individual or a Hindu undivided family, the provisions of clause (i) and clause (ii) shall have effect, as if for the words "ten lakh rupees", the words "twenty-five rupees" had been substituted.] (3) The Board may, having regard to the nature of the business or profession carried on by any class of persons, prescribe, by rules, the books of account and other documents (including inventories, wherever necessary) to be kept and maintained under sub-section (1) or sub-section (2), the particulars to be contained therein and the form and the manner in which and the place at which they shall be kept and maintained. (4) Without prejudice to the provisions of sub-section (3), the Board may prescribe, by rules, the period for which the books of account and other documents to be kept and maintained under sub-section (1) or sub-section (2) shall be retained.] 1. Ins. by Act 41 of 1975, s. 11 (w.e.f. 1-4-1976). 2. Subs. by Act 4 of 1988, s. 2, for Income-tax Officer" (w.e.f. 1-4-1988). 3. Subs. by Act 21 of 1998, s. 20, for "forty thousand" (w.e.f. 1-4-1999). 4. Subs. by s. 20, ibid ., for "five hundred thousand" (w.e.f. 1-4-1999). 5. Subs. by Act 26 of 1997, s. 10, for "during such previous year" (w.e.f. 1-4-1998). 6. Subs. by Act 33 of 2009, s. 18, for "section 44AD or section 44AE or section 44AF" (w.e.f. 1-4-2011). 7. Ins. by Act 32 of 2003, s. 22 (w.e.f. 1-4-2004). 8. Subs. by Act 33 of 2009. S. 18, for "previous year" (w.e.f. 1-4-2011). 9. Subs. by Act 28 of 2016, s. 24, for clause (iv) (w.e.f. 1-4-2017). 10. Ins. by Act 7 of 2017, s. 19 (w.e.f. 1-4-2018). 1 [44AB. Audit of accounts of certain persons carrying on business or profession .—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[2] [one crore rupees] in any previous year[3] *; or (b) carrying on profession shall, if his gross receipts in profession exceed[4] [fifty lakh rupees] in any[5] [previous year; or (c) carrying on the business shall, if the profits and gains from the business are deemed to be the profits and gains of such person under[6] [section 44AE][7] [or section 44BB or section 44BBB], as the case may be, and he has claimed his income to be lower than the profits or gains so deemed to be the profits and gains of his business, as the case may be, in any[8] [previous year; or][3] *] 9[(d) carrying on the 10[profession] shall, if the profits and gains from the 10[profession] are deemed to be the profits and gains of such person[11] [under section 44ADA] and he has claimed such income to be lower than the profits and gains so deemed to be the profits and gains of his[10] [profession] and his income exceeds the maximum amount which is not chargeable to income-tax in any[12] [previous year; or]] 13[(e) carrying on the business shall, if the provisions of sub-section (4) of section 44AD are applicable in his case and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year,] get his accounts of[14] [such previous year] audited by an accountant before the specified date and[15] [furnish by] that date the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed: 16[Provided that this section shall not apply to the person, who declares profits and gains for the previous year in accordance with the provisions of sub-section (1) of section 44AD and his total sales, turnover or gross receipts, as the case may be, in business does not exceed two crore rupees in such previous year:] 17[18[Provided further that] this section shall not apply to the person, who derives income of the nature referred to in[19] * section 44B or[20] [section 44BBA], on and from the 1st day of April, 1985 or, as the case may be, the date on which the relevant section came into force, whichever is later: 1. Ins. by Act 21 of 1984, s. 11 (w.e.f. 1-4-1985). 2. Subs. by Act 23 of 2012, s. 13, for "sixty lakh rupees" (w.e.f. 1-4-2013). 3. The words and figures "or years relevant to the assessment year commencing on the first day of April, 1985, or any subsequent assessment year" omitted by Act 26 of 1988, s. 14 (w.e.f. 1-4-1989). 4. Subs. by Act 28 of 2016, s. 25, for "twenty-five lakh rupees" (w.e.f. 1-4-2017). 5. Subs. by Act 26 of 1997, s. 11, for "previous year" (w.e.f. 1-4-1998). 6. Subs. by Act 33 of 2009, s. 19, for "section 44AD or section 44AE or section 44AF" (w.e.f. 1-4-2011). 7. Ins. by Act 32 of 2003, s. 23 (w.e.f. 1-4-2004). 8. Subs. by Act 33 of 2009, s. 19, for "previous year," (w.e.f. 1-4-2011). 9. Ins. by s. 19, ibid . (w.e.f. 1-4-2011). 10. Subs. by Act 28 of 2016, s. 25, for "Business" (w.e.f. 1-4-2017). 11. Subs. by s. 25, ibid ., for "under section 44AD" (w.e.f. 1-4-2017). 12. Subs. by s. 25, ibid ., for "previous year" (w.e.f. 1-4-2017). 13. Ins. by s. 25, ibid . (w.e.f. 1-4-2017). 14. Subs. by Act 26 of 1988, s. 14, for "such previous year or years" (w.e.f. 1-4-1989). 15. Subs. by Act 22 of 1995, s. 13, for "obtain before" (w.e.f. 1-7-1995). 16. Ins. by Act 7 of 2017, s. 20 (w.e.f. 1-4-2017). 17. Subs. by Act 18 of 1992, s. 20, for "Provided that" (w.e.f. 1-4-1985). 18. Subs. by Act 7 of 2017, s. 20, for "Provided that" (w.e.f. 1-4-2017). 19. The words, figures and letters "section 44AC or" omitted by Act 22 of 1995, s. 13 (w.e.f. 1-7-1995). 20. Subs. by Act 32 of 2003, s. 23, for "section 44BB or section 44BBA or section 44BBB" (w.e.f. 1-4-2004). 1[Provided also] that] in a case where such person is required by or under any other law to get his accounts audited[2] *, it shall be sufficient compliance with the provisions of this section if such person gets the accounts of such business or profession audited under such law before the specified date and 3[furnishes by] that date the report of the audit as required under such other law and a further report 4[by an accountant] in the form prescribed under this section. Explanation .—For the purposes of this section,— (i) "accountant" shall have the same meaning as in the Explanation below sub-section (2) of section 288; 5[(ii) "specified date", in relation to the accounts of the assessee of the previous year relevant to an assessment year, means[6] [the due date for furnishing the return of income under sub-section (1) of section 139].]] 44AC. [ Special provision for computing profits and gains from the business of trading in certain goods . ] Omitted by the Finance Act, 1992 (18 of 1992) , s. 21 ( w.e.f. 1-4-1993) .