Presumptive taxation under section 44ADA defeats a processing adjustment to LLP remuneration when returned income is not rebutted.

Where a return is filed under the presumptive scheme in section 44ADA, income is deemed at 50% of gross receipts and an adjustment under section 143(1)(a)(v) for LLP remuneration was held unsustainable on the facts stated. The assessee's declared income under the presumptive scheme was accepted, and the Revenue did not rebut that factual position, so the addition was deleted. The note indicates that processing adjustments cannot be sustained when they conflict with the returned income computed under section 44ADA on the available record.

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Issues: Whether an addition made in processing of return under section 143(1)(a)(v) could be sustained where the assessee had returned income under the presumptive scheme under section 44ADA.

Analysis: The assessee had filed the return under the presumptive scheme under section 44ADA, which deems profits at 50% of gross receipts under section 44ADA(1). The addition of remuneration received from the LLP was not found sustainable in view of the returned income declared under the presumptive scheme, and the Revenue did not rebut this factual position.

Conclusion: The addition made in the processing under section 143(1)(a)(v) was deleted and the issue was decided in favour of the assessee.

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