Auditing is compulsory in a partnership firm?

As per Section 44 AD of Income Tax Act, 1961:-

If an “Eligible Assessee” i.e. an Individual, HUF or Partnership Firm (for detail refer note 1 below) whose gross receipts from the “Eligible Business” (for details refer note 2 below) during the previous year are less than equal to Rs. 1 Crore – then he is required to show  at least 8% of his gross receipts or turnover as “Profits and Gains of Business or Profession”.

This is a mandatory section and in case if an eligible assessee claims that his “Profits and Gains of Business or Profession” is less than 8% and his total income exceeds the maximum amount which is not chargeable to income tax, then he is liable to maintain proper books of accounts (as per Section 44AA) and get his accounts audited and furnish a report of such audit as required u/s 44 AB.