23 July 2011
Section 44AD of the Income Tax Act, 1961 states (1)"Notwithstanding anything to the contrary contained in sections 28 to 43C, in the case of an eligible assessee engaged in an eligible business,a sum equal to eight per cent of the total turnover or gross receipts of the assessee for the previous year on account of such business or, as the case may be, a sum ......." In this case, what would be the proper meaning that can be attached to the phrase "as the case may be" for interpreting the said section? Will this include professional services provided by the eligible assessee?
23 July 2011
Case-1 - Show 8% or Income Case-2 - Show higher than the sum as shown in Case1
so " as the case may be" can be interpreted as "or" between the two cases creating a choice between the 2.
However,
Case-1 - Show 8% or Income is mandatory. Case-2 - Show higher than the sum as shown in Case -1 is either at the will when income is below 8% and shows compulsion when the income is definitely at higher side.
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