Section 44AD of the Act is for presumptive income from Business. The burden is on the assessee to prove that money lending is the business of the assessee. PCIT v. Mohan Bhagwatprasad Agrawal (2020) 425 ITR 119 / 270 Taxman 126 / 115 taxmann.com 69 / 270 Taxman 126 (Guj.)(HC) . Depends on facts of the case the number of transactions etc , money lending licence may not be mandatory for deciding whether business income or income from other sources. In Pranava Electronics (P.) Ltd v. Dy.CIT (2021) 278 Taxman 175 ( Karn) ( HC) the Court held that writing off of irrecoverable loan in books of account sufficient to claim deduction for bad debts . Money lending licence is not required to be in money lending business to claim said deduction. Matter remanded to Appellate Tribunal. In Sanchay Finance Co. Ltd. v. ITO (2005) 93 TTJ 153 (Delhi)(Trib.) assessee company, engaged in running money lending business had not been granted certificate by RBI for running finance activities, expenses incurred by it to maintain establishment were allowable against interest income and profit on sale of shares.