44ad

Till Ass Yr. 2016-17, as per proviso to section 44AD(2), where the eligible assessee is a firm, the salary and interest paid to its partners was available for deduction from the income computed under sub-section (1) of section 44AD subject to the conditions and limits specified in section 40(b).

From Ass Yr. 2017-18, in case of eligible assessee being a firm, the salary and interest paid to its partners shall not be allowed to be deducted from the income computed under sub-section (1) of section 44AD.

due to interest deduction the pgbp amount went negative and leeter is given from department that there is assessee has claim loss and there is no audit is done for that

Do you mean to say that your turnover is lesser than the interest and remuneration paid to partners?

turnover doesnot include befor or after deduction of interest and all that it is just the sale amount of the business

You are required to offer the profits as per presumptive rate of 8% (or more) over the total turnover, less  the interest paid to partners. Say, TO is 50 lakhs, profits u/s. 44AD would be  = 4 lakhs less interest, if any; offered for taxation purpose. Even if  after interest+remuneration all other expenditures it be net loss!!!

yes the turnover is less than the interest paid to partners than whats the solution

Refer: section 44AD(5):

"Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee who claims that his profits and gains from the eligible business are lower than the profits and gains specified in sub-section (1) and whose total income exceeds the maximum amount which is not chargeable to income-tax, shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA and get them audited and furnish a report of such audit as required under section 44AB."

e.g T/O. is 60000 and no books of account is maintain & interest paid is 300000 then there is negative figure in PGBP then whats the solution

If the firm doesn't have any other income, it doesn't satisfy the condition of " ..total income exceeds the maximum amount which is not chargeable to income-tax, ..." Hence the condition of maintaining books and tax audit is not applicable.