Section 44ADA cannot be applied to a non-resident professional, and presumptive taxation addition was deleted.

Section 44ADA of the Income-tax Act, 1961 was held inapplicable to a non-resident professional, because the presumptive taxation regime under that provision applies only to resident assessees. The lower authorities had applied section 44ADA to compute professional income on a presumptive basis and thereby restricted the claimed expenditure and loss, but that approach was found unsustainable. The addition made on that basis was deleted, with the assessee's non-resident status being determinative of the outcome.

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Issues: Whether section 44ADA of the Income-tax Act, 1961 could be invoked against a non-resident assessee for computing professional income on a presumptive basis and restricting the loss claim.

Analysis: The assessee had filed the return as a non-resident. The dispute turned on the applicability of section 44ADA, under which the lower authorities had applied presumptive taxation and restricted the claimed expenditure and loss. The Tribunal held that section 44ADA applies only to resident professionals and cannot be applied to a non-resident assessee. The addition sustained by the lower authorities on that basis was therefore unsustainable.

Conclusion: Section 44ADA was held inapplicable to the assessee and the addition made by the Assessing Officer was deleted, in favour of the assessee.

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