TDS Under Section 194J Alone Cannot Determine Nature of Income for presumptive taxation

Shazia Khan Vs ITO (ITAT Lucknow) The Income Tax Appellate Tribunal considered whether the assessee’s receipts from referral and facilitation services for financial products were taxable under the presumptive taxation scheme of Section 44AD or Section 44ADA of the Income-tax Act, 1961. The Assessing Officer had rejected the assessee’s claim under Section 44AD and computed income under Section 44ADA at 50% of gross receipts solely because tax had been deducted at source under Section 194J. The CIT(A) affirmed this approach. The Tribunal observed that the deductor’s decision to...