44ad & vat

This query is : Resolved

DAdenwala (Querist)
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04 January 2012 Respected Sir,
The Case is that a person has not paid his Vat liability. The assessment of that person is made u/s 44AD. That person is filing Belated Return.

Will the Vat amount be Disallowed while computing income u/s 44AD for that assessee?

Please Guide Me in the Above Matter.
Thanking YOU.

Prakash Kochar

Prakash Kochar (Expert)
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05 January 2012 Section 44AD(1) contains non abstante clause : Section 44AD starts with the words Notwithstanding anything contained in section 28 to 43C….. Thus the presumptive income scheme as contained u/s 44AD is applicable irrespective of any provisions contained u/s 28 to 43C. it means section 28 to 43C of Income Tax Act, 1961 is not applicable on eligible assessee declaring income u/s. 44AD.

Thus in my view VAT amount will not be disallowed while computing income u/s. 44AD.

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