TaxTMI 
TaxTMI 
2017 (8) TMI 1758
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....n his profit and loss account. 2. Assessee running a computer coaching centre had filed his return of income for the impugned assessment year disclosing income of Rs. 1,95,340/-. During the course of assessment proceedings before the ld. Assessing Officer, assessee was required to produce cash book, ledger and supporting records for expenditure claimed in profit and loss account. In the profit and loss account assessee had shown gross receipt of Rs. 51,14,732/- against which expenditure of Rs. 48,53,818/- was claimed, including depreciation of Rs. 15,830/-. However, assessee stated that the business was closed down and the bills and book misplaced. Further, as per assessee books were lost in the floods which came to Chennai in December, ....
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....Rs. 51,14,732/-. With these observations, he confirmed the disallowance made by the ld. Assessing Officer. 4. Now before me, ld. Authorised Representative strongly assailing the order of the ld. Commissioner of Income Tax (Appeals) submitted that assessee should have been given the benefit of Sec. 44AD of the Act. In any case, according to him, the disallowance of 50% of expenditure was not fair. 5. Per contra, ld. Departmental Representative strongly supported the orders of the authorities below. According to him, Section 44AD of the Act had no application to a person carrying on a profession. 6. I have considered the rival contentions and perused the orders of the authorities below. For a claim of the assessee to fall u/sec. 44AD....
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....eport of such audit as required under section 44AB. (6) The provisions of this section, notwithstanding anything contained in the foregoing provisions, shall not apply to- (i) a person carrying on profession as referred to in subsection (1) of section 44AA ; (ii) a person earning income in the nature of commission or brokerage ; or (iii) a person carrying on any agency business. Explanation For the purposes of this section,- (a) "eligible assessee" means,- (i) an individual, Hindu undivided family or a partnership firm, who is a resident, but not a limited liability partnership firm as defined under clause (n) of sub-section (1) of section 2 of the Limited Liability Partnership ....
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....perty there, by which I am getting Rs. 8,000/- as rent. Excepting that, I do not have any other source of income. Moreover, after the faculties left the institute, I became dejected. So, I have nor preserved any other records. Since the institute was closed once and for all the premises vacated, the records were buried alongwith it. Had the Institute been in existence, I could have maintained all the relevant records called for, by you''. It is clear from the above that assessee was carrying on a profession in the field of education by running coaching centre and assessee himself was one of the faculty. Thus by virtue of sub section (6) of Sec. 44AD of the Act, assessee fell outside the scope of the said section. The only question remain....