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2022 (3) TMI 1236 - ITAT MUMBAIComputation of income u/s 44AD - Special provision for computing profits and gains of business on presumptive basis - income returned may be maintained, as the assessee is not a professional, hence entitled to file her return u/s. 44AD - HELD THAT:- At what rate of tax the clients deduct while making payments to the assessee is of absolutely no relevance to determine the character of receipt in the hands of the assessee recipient and for determining the status of the assessee as to whether he is engaged in business or profession. The assessee’s plea is that he is engaged in the business of rendering Consultancy services. We find that the expression Consultancy‟ does not form part of various professions mentioned in Section 44AA - The assessee has filed return her return of income u/s. 44AD of the act, considering her receipts from business and not of profession. The assessee has declared an income of Rs ₹ 14, 66,462/- out of total receipt of ₹ 32, 40,000/- which works out to around 45% of the gross receipts which is fair enough. In this view of the matter, we set aside the orders of the authorities below. The assessing officer is directed to accept the income returned at ₹ 14, 66,462/-. Appeal filed by the assessee is allowed.
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