https://www.taxtmi.com/caselaws?id=14161 The court invalidated Circular No. 737 issued by the Central Board of Direct Taxes, finding its deletion of deductions for firms under section 44AD erroneous in light of a retrospective amendment. The judgment clarified that deductions for salary/interest to partners were admissible, emphasizing the comprehensive nature of estimated income under section 44AD. The erroneous circular had led to reassessments against the petitioner, prompting the court to quash it and mandate fresh assessment orders in compliance with the law. This decision resolved confusion, reinstated the correct interpretation of section 44AD, and safeguarded taxpayers' rights. en-us Wed, 21 May 1997 00:00:00 +0530 Tue, 14 Jul 2009 11:35:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=14161 The court invalidated Circular No. 737 issued by the Central Board of Direct Taxes, finding its deletion of deductions for firms under section 44AD erroneous in light of a retrospective amendment. The judgment clarified that deductions for salary/interest to partners were admissible, emphasizing the comprehensive nature of estimated income under section 44AD. The erroneous circular had led to reassessments against the petitioner, prompting the court to quash it and mandate fresh assessment orders in compliance with the law. This decision resolved confusion, reinstated the correct interpretation of section 44AD, and safeguarded taxpayers' rights. Case-Laws Income Tax Wed, 21 May 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=14161