2022 (3) TMI 621

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....s invalid. The reason why return of income was treated as invalid was because according to respondent, petitioner failed to get her accounts audited u/s 44AB though her gross receipts / turnover after including remuneration received from partnership firm was more than the threshold limit of Rs. 50,00,000/-. 2. Petitioner is an individual deriving her income under the heads salary, income from house property, business / profession and income from other sources. Petitioner is an Actor by profession. Petitioner also is a partner in two partnership firms namely M/s Zorabian Sales and Marketing and M/s Zorabian Foods. 3. On or about 25th October 2017, petitioner filed her return of income for A.Y.-2017-2018 under Section 139(1) of the Act decl....

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....nt no.1 passed order dismissing the revision application, rejecting petitioner's submissions and upholding the order of respondent no.2. While doing so, respondent no.1 has relied upon decision of ITAT Kolkata in Amal Ganguli Vs. DCI, which had been reversed by the High Court in Sagar Dutta Vs. CIT, IT Appeal No.150 of 2009 dated 17th February 2014. 6. It is this order of respondent no.1, which is impugned in this petition. 7. Section 44AB of the Act reads as under: "44AB. Every person:- (a) ................ (b) carrying on profession shall, if his gross receipts in profession exceed fifty lakh rupees in any previous year; or (d)........... (e)............ get his accounts of such previous year audited by an accountant before ....

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....aim of petitioner that judgment of ITAT in Amal Ganguli has been reversed, is not correct. 10. The provision applicable to petitioner is clause (b) of Section 44AB which provides, every person carrying on profession shall, if his gross receipts in profession exceed fifty lakh rupees in any previous year, get his accounts of such previous year audited by an accountant before the specified date and furnish by that date the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed. Profession is defined under Section 2(36) of the Act as under: "Profession includes vocation". The income earned by petitioner as remuneration received as working partner or partn....

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....t 8% under Section 44AD and returned Rs. 4,68,240/- as income from the remuneration and interest received from the partnership firm. The Assessing Officer did not agree with the assessee and opined that Section 44AD is available only for an eligible assessee engaged in an eligible business and that the assessee was not carrying on business independently but only as partner in the firm. The Assessing Officer further held that the assessee did not have any turnover and receipts on account of remuneration and interest from the firms cannot be construed as gross receipts mentioned in Section 44AD of the Act. This was challenged by the assessee before Commissioner of Income Tax (Appeals), who rejected the appeal and later before the ITAT, which....