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Effect of section 44AD ::

Last updated: 20 May 2008

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Court :
HC

Brief :
Held by the Hon`ble Bench that whenever the law provides any concession for its rigors, the observance and satisfaction of the qualifying criteria are presumed and section 44AD would not operate to curtail the scope of section 2(24) read with section 5. hence where assessee admittedly earns a higher income it would be liable to assess on that basis and section 44 AD is not applicable.

Citation :
Shivani Builders Vs. I.T.O. 10/27/2005 [2007] 295 ITR 281 (Ahmedabad)

Effect of section 44AD Shivani Builders Vs. I.T.O. 10/27/2005 [2007] 295 ITR 281 (Ahmedabad) Case Fact: Whether, section 44AD is applicable where assessee maintaining accounts and income higher than presumptive income? Decision: Held by the Hon`ble Bench that whenever the law provides any concession for its rigors, the observance and satisfaction of the qualifying criteria are presumed and section 44AD would not operate to curtail the scope of section 2(24) read with section 5. hence where assessee admittedly earns a higher income it would be liable to assess on that basis and section 44 AD is not applicable.