Background: See the wordings of the two acts:
44 AD
(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 sub-section (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
44AA. (1) Every person carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or any other profession as is notified by the Board in the Official Gazette shall keep and maintain such books of account and other documents as may enable the Assessing Officer to compute his total income in accordance with the provisions of this Act.
These are relevant portions of the bare act. If a non-professonal has set up a nursing home. It is a profession that is defined under 44 AA (1)(nursing fileds maybe considered as coming under the field of "medicine"). One could argue that the non-professional is not "carrying" out the medical profession here ie he himself is not carrying out and he merely has setup an enterprise which in turn will carry out the profession....YES...one could argue like this.
I have seen multiple tribunal judgements and court judgements like this wherein it has been ruled that even those establishments run by doctors themselves should be considered as a business. But this particular point is the regarding the applicability of 44 AD. Subsection (6) says that a person engaged in profession defined in 44 AA(1) cannot use 44 AD.
my questions are:
1)suppose a non medical person starts a dental clinic(and employs dentists), can he opt for 44AD here? Will he become I eligible by counting him as "someone carrying out a 44AA(1)profession?
2) if a professional is starting a grocery store, does he become I eligible for 44AD because he as a person (coming under 44 AA(1) ) becomes ineligible for 44AD?
3) if he retires and is no longer practising his profession , can he start a grocery store and now claim 44 AD?
4)suppose he was a physiotherapist and is now retired . can he after retirement start a dental clinic and claim 44AD??
CAclubindia
