| Question And Answer | |
|---|---|
| Subject: | Applicability of 44 AD for a non professional running a dental clinic |
| Category: | Income-Tax |
| Querist: | VIJAY |
| Answered by: | Law Intern |
| Tags: | Presumptive taxation, Section 44AD, Section 44ADA |
| Date: | September 29, 2025 |
My mother has invested her money to start a dental clinic. She is not a professional and is just a housewife. We don’t expect big revenue and doesn’t want the hassle of keeping books. The question is can she use 44 AD? The question comes because of contrasting ITAT Verdicts. One type is attacked below(Ranjith Jena case) . But then there is Kety Medicare case of 2025 where ITAT says the opposite(the settings allow only one pdf file to be uploaded. Else i could have uploaded Kety case as well). I am not educated in law to see the difference in the facts of those two cases as to why interpretations went opposite ways. My question is -can my mother use 44 AD?
Yes. The activity carried on by your mother is a business and not the medical profession as she is not a qualified dentist.
In Ranjita Jena, the Tribunal recorded the following finding of fact:
“13. From the facts and findings recorded by the AO, it is clear that the assessee was engaged in the medical profession for earning her income as calculated by the AO on the basis of documents available before him. The main source of income of the assessee is from the consultancy/services from the treatment of patients which was being given by the doctors/professionals/technicians etc. The predominant source of income was from medical
profession“.
On the other hand, in Kety Medicare Centre v. ACIT it was held that “Assessee-firm provided ancillary services (room rent, X-ray) and did not earn doctors’ fees, which were declared by partners individually. Section 44AD(6) excludes only individuals engaged in medical professions, not firms providing non-professional services. Accordingly, the firm’s activities were business [not profession] activities under section 44AD.”
Accordingly, both judgements have gone on the peculiar facts of their cases. As your mother is providing non-professional services, section 44AD will apply.