can we show agriculture income under 44ad
in my opinion
one view it cannot be shown as
Agriculture Income is an exempt income which is assessed under a separate head of Agriculture Income.
but another view section 44ad does not cover section 10(1) for un-eligibility so it can be shown
To my best of my understanding, agricultural income can also be in nature of business. Please look into the below case
'' B. Nagi Reddi vs The Commissioner Of Income-Tax on 25 July, 2002'' (Mad)
By attendance to the facts and circumstances of the case, the Income Tax Appellate Tribunal is right in holding that the income from shooting hire charges is not agricultural income within the meaning of Section 2(1) of the Income-tax Act, 1961 for the assessment years 1980 -81 and 1981-82
This means agriculture income can also took form of business as above hire charges are ''Revenue derived from agriculture land''.
Also sec 44AD commences as ''Notwithstanding anything to the contrary contained in sections 28 to 43C, in the case of an eligible assessee engaged in an eligible business"
Explanation.—For the purposes of this section,—
[a] "eligible assessee" means,—
[i] an individual, Hindu undivided family or a partnership firm, who is a resident, but not a limited liability partnership firm as defined under clause [n] of sub-section [1] of section 2 of the Limited Liability Partnership Act, 2008 [6 of 2009]; and
[ii] who has not claimed deduction under any of the sections 10A, 10AA, 10B, 10BA or deduction under any provisions of Chapter VIA under the heading "C. - Deductions in respect of certain incomes" in the relevant assessment year;
[b] "eligible business" means,—
[i] any business except the business of plying, hiring or leasing goods carriages referred to in section 44AE; and
[ii] whose total turnover or gross receipts in the previous year does not exceed an amount of two crore rupees.
In above instance, revenue from shooting can be assessed under sec 44AD(Not eligible to claim deduction under sec 10).
Moreover sec 10 is not a mandatory section unlike sec-32 rather it is a benefit given to assessee from tax burden. If an assessee don't want to take advantage of the section, he can pay tax on agriculture income.
But if agriculture income once assessed as taxable income, then no benefit under sec 10 will be available to assessee in any future assessment years, according to my interpretation.
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