Appeal allowed under Income Tax Act section 250 for AY 2017-18. Assessee not eligible under section 44ADA.

The appeal against the Commissioner of Income Tax/National Faceless Appeal Centre's order under section 250 of the Income Tax Act for AY 2017-18 was allowed. The Tribunal held that the Assessee did not qualify for professions specified under section 44ADA, leading to the deletion of the added income of Rs. 2,40,640.

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Issues involved:
The appeal against the order passed by the Commissioner of Income Tax/National Faceless Appeal Centre under section 250 of the Income Tax Act, 1961 for AY 2017-18.

Details of the Judgment:

Issue 1: Addition of income under section 44ADA of the Act

The Assessee declared income @8% on receipts of Rs. 8,30,800/- from consultancy business, including Rs. 4,81,280/- on which TDS was deducted under section 194J for professional and technical services. The AO/CPC added income @50% under section 44 ADA, resulting in an addition of Rs. 2,40,640/-. The Commissioner upheld the addition, considering the deductors as big corporates and the nature of services as covered under section 44ADA. However, the Assessee, not qualified for professions specified under section 44ADA, challenged the addition.

Decision: The Tribunal observed that the Assessee's case did not fall under the provisions of section 44ADA as the Assessee lacked the qualifications for professions specified. Therefore, the addition of Rs. 2,40,640/- was deemed liable to be deleted.

Result: The appeal filed by the Assessee was allowed.

The judgment was pronounced in the open Court on 29th August, 2023.

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