Case Law Analysis
|Income Tax Appellate Tribunal
Section 44AD Income Tax Act | Presumptive Taxation Invalid Beyond Rs. 1 Crore Turnover; Disallowed Expenses Must Be Reconsidered on Remand : ITAT Pune
The ITAT Pune has ruled that a partnership firm cannot claim presumptive taxation under Section 44AD once gross receipts surpass Rs. 1 crore, even if income was initially declared at 8%. Crucially, it directed the Assessing Officer to reconsider disallowed business expenses on remand, reinforcing that denial of presumptive benefit does not automatically justify blanket expense rejection without proper scrutiny.