In
the Finance Bill 2012 section 44AD has been amended retrospectively
w.e.f A.Y. 2011-12 to the effect that presumptive scheme under the said
section is not applicable to
persons carrying on profession as referred to in section 44AA(1) or
persons earning income in the nature of commission or brokerage income or persons carrying on any agency business.
The
said amendment has been made with retrospective effect from A.Y.
2011-12. Retrospective amendment is either made to validiate an earlier
levy or to make clear the legislative intent.
Professionals
are not covered under the presumptive scheme of section 44AD that was
very much clear from the definition of eligible business as the word
specially business was mentioned therein and business cannot include
professions.
However, whether agency business or income from
commission was covered under presumptive scheme under section 44AD or
not, it was not clear from the wording of section 44AD and definition of
eligible business contained in the explanation to the said section as
word business has only been mentioned in the definition of eligible
business and agency business could have been interpreted as business by
any rational person.
Therefore there must have been certain
cases where the assessees carrying on some agency business or earning
income from commission may have filed their return of income under the
presumptive income scheme of section 44AD. In such cases if such
assessee's(carrying on agency business or earning income from
commission) turnover or income exceeds the limits prescribed u/s 44AA
then such assessee would be required to maintain regular books of
accounts and he should have filed his return of income as per balance
sheet and books of accounts.
Therefore such assessee should
revise his return of income and file his return in accordance with his
books of account and balance sheet, as such assessee carrying on agency
business is not covered u/s 44AD.
Thus after the retrospective
amendment in section 44AD w.e.f A.Y. 2011-12, the assessees carrying on
agency business or earning income from commission should revise their
return of income of A.Y. 2011-12, if they have filed their return of
income persuming them to be covered under section 44AD.