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.
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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