ITAT : Denies presumptive taxation benefit u/s. 44AD to partner on remuneration & interest from firm

Chennai ITAT denies assessee-partner’s claim of estimating income on presumptive basis u/s. 44AD with respect to interest and remuneration earned from the partnership firms during AY 2012-13; While filing return of income, assessee had applied presumptive rate @ 8% u/s 44AD on interest and remuneration received from various  partnership firms, however, AO had denied the claim on the ground that assessee was not doing any business independently but was only a partner in the firms; Referring to Sec. 28(v) read with Section 40(b), ITAT acknowledges that remuneration and interest received from a firm, to the extent eligible u/s 40(b), would be considered as ‘profits and gains from business or profession’ of the recipient partner; However, ITAT clarifies that “This by itself…would not translate such remuneration and interest, to gross receipts or turnover …of a business independently carried on by a partner.”; ITAT opines that the intention of insertion of Sec. 44AD was to help small business to comply with the taxation provisions and that the “Intention was not at all to construe a partner’s remuneration or interest as business income.”:ITAT