Section 44AD, 44ADA of Income tax Act, 1961—This is an appeal by Assessee directed against the order passed by CIT(A).

Assessee is an individual. His only source of income is income from professional fees of Rs. 15,00,000 received from Crest Advertising Ltd. In his income tax return filed for AY 2017-18, he declared income from professional of Rs. 1,20,000/- being 8% of the gross receipts from business u/s.44AD of the act.

The Tax deduction Certificate filed by the Assessee in Form No. 26AS in respect of professional income declared showed that tax had been deducted u/s.194J of the Act. The CPC, noticing that TDS was made u/s.194J of the Act and no income u/s.44ADA of the Act was declared in the return of income, proposed to add a sum of Rs. 7,50,000/- (50% of the gross receipts of Rs. 15 lacs) which was the presumptive income from profession as against Sec.44AD which applies to presumptive income from business.

Held that—The addition that the income appearing in Form 26AS not having been included in the return of income filed is sine qua non for invoking the provisions of section 143(1)(a)(vi) since the same is absent in the present case. We are of the view that the CPC ought not to have made the impugned adjustment. The addition made is liable to be deleted on this basis alone. The issue whether income earned by the Assessee has to be taxed u/s.44AD or Sec.44ADA of the Act cannot be subject matter of decision in processing u/s.143(1) (a) of the Act. In view of the above conclusions, we are not going to the question whether the income of the Assessee is assessable under section 44ADA or 44AD of the Act. The issue is left open without any decision.[SHRI ARTHUR BERNARD SEBASTINE PAIS VERSUS DEPUTY COMMISSIONER OF INCOME-TAX, CPC, BENGALURU.] [2019] 18 ITCD Online (12) [ITAT BANGALORE]