| Question And Answer | |
|---|---|
| Subject: | Applicability of Section 44AD |
| Category: | Income-Tax |
| Querist: | Bhushhan Bhuttada |
| Answered by: | Law Intern |
| Tags: | Presumptive taxation, Section 44ADA |
| Date: | July 25, 2025 |
I am engaged in the activity of collecting pathology test samples from customers and transporting them to Golvilkar Metropolis Health Services Pvt. Ltd. for further processing. I am neither a qualified medical practitioner nor does I perform any diagnosis, analysis, or consultation. My role is limited to logistical support. I am just providing logistical or support activity in the medical field and does not make the assessee a professional under section 44ADA. Kindly provide the case law.
Section 44ADA of the Income Tax Act, 1961 applies to “professionals” engaged in specified professions listed under Section 44AA(1) such as medical practitioners, lawyers, engineers, etc. As your activity is limited to logistical support without performing diagnosis, analysis, or consultation, it will not qualify as a “profession” under Section 44ADA.
There are a number of judgements which have explained the difference between a “profession” and “business” such as G.K. Choksi & Co. v. CIT (2001) 252 ITR 863 (SC), CIT v. Dr. B.V. Rao (1988) 171 ITR 604 (Madras HC), Barendra Prasad Ray v. ITO (1981) 129 ITR 295 (SC) and CIT v. Manmohan Das (1966) 59 ITR 699 (SC).
Essentially, the distinction between a “profession” and a “business” is that a profession involves intellectual skill, specialized knowledge, or expertise and is subject to regulation by a statutory body (such as the ICAI or the Medical Council) and also has a “code of conduct” for its members whereas a business only involves commercial or operational activities.