MEDIHEALTH INDIA,DELHI vs. ASSESSMENT UNIT, INCOME TAX DEPARTMENT, DELHI

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ITA 3956/DEL/2026Status: DisposedITAT Delhi15 July 2026AY 2024-253 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal found merit in the assessee's case, stating that the assessee could not be assessed under Section 44AD read with Section 44AA(1) as there was no indication of the assessee carrying out specified professional activities. The Assessing Officer was directed to finalize the computation afresh.

What were the facts?

The assessee declared business receipts under Section 44AA(1) of the Income Tax Act. The lower authorities assessed the assessee under the special provision of Section 44AD of the Act.

What were the issues?

Whether the assessee could be assessed under Section 44AD when business receipts were declared under Section 44AA(1) without evidence of specified professional activities.

Which sections of the Income-tax Act were involved?

Section 44AA(1),Section 44AD

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “SMC” NEW DELHI

Before: SH. SATBEER SINGH GODARA

For Appellant: Adv. and Sh. Tarun Chanana, Adv
Hearing: 02.06.2026Pronounced: 02.06.2026

This assessee’s appeal for Assessment Year: 2024-25, arises against the Commissioner of Income Tax (Appeals)/ National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and Order No. ITBA/NFAC/S/250/2025- 26/1086643718(1), dated 27.02.2026 involving proceedings under section 143(3) r.w.s. 144B of the Income Tax Act, 1961 (hereinafter referred to as the ‘the Act’).

Heard both the parties. Case file perused.

2 I.T.A. No. 3956/Del/2026 2. It transpires during the course of hearing that the assessee/appellant is aggrieved against both the learned lower authority’s respective assessment and learned appellate findings assessing him for this business receipts declared u/s 44AA(1) of the Act. They hold in other words that the assessee deserves to be assessed under the special provision of section 44AD of the Act.

3.

Both the parties vehemently reiterate their respective stands against in support of the learned lower authorities’ impugned action. The Revenue could hardly dispute that the legislature itself has stipulated u/s 44AA(1) of the Act gets afforded in the special activities of legal, mechanical engineering as the case may be. There is no indication in the case records as to whether the assessee carries out any of these specified or notified professional activities or not. I therefore find merit in the assessee’s case that It could not be assessed u/s 44AD r.w.s. 44AA(1) of the Act and direct the learned Assessing Officer to finalize his afresh computation as per law in very terms.

4.

No other ground or argument has been pressed before the tribunal.

5.

This assessee’s appeal is allowed.

Order pronounced in the open court as on 02.06.2026

Sd/- (SATBEER SINGH GODARA) JUDICIAL MEMBER Dated 15th July, 2026 *GP/Sr.PS* Copy of the order forwarded to:

3 I.T.A. No. 3956/Del/2026 (1) Appellant: (2) Respondent: (3) CIT (4) CIT (Appeals) (5) DR, I.T.A.T. Assistant Registrar

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