Roshan Mohan Vs ITO (ITAT Bangalore)
No Relief for PR Consultant- Assessee’s Attempt to Shift from 44ADA to 44AD Rejected- Agency Business Not Eligible u/s 44AD- Revised Return Invalid – ITAT Bangalore
Assessee filed his original return on 08.08.2018 declaring income of ₹16,44,968. Subsequently, a revised return was filed on 29.03.2019 declaring reduced income of ₹2,47,000. The reduction was claimed on the basis that income should be computed fully u/s 44AD at 6% on turnover, instead of partly under 44AD & partly under 44ADA as done in original return.
AO rejected the revised return, observing that Assessee had originally admitted income based on TDS under sections 194C & 194J. Later change in nature of business in revised return to show entire receipts under 44AD was considered a deliberate attempt to lower income. Accordingly, AO taxed income as per original return at ₹16.44 lakhs. CIT(A) upheld AO’s view, holding that revised return was only to misrepresent nature of work, and income declared in original return was correct.
Before Tribunal, Assessee argued that he was engaged in public relations (PR) services, which are not professional services covered u/s 44ADA. Hence, presumptive provisions u/s 44AD should apply. He relied on agreements & case law to contend that his activity was not a profession. Revenue opposed, stating that as per section 139(5), revision is allowed only for omission or wrong statements in original return, not for re-characterisation of business.
