Vidhya Vivek Padgaonkar v. ITO: Receipts from educational content assignments constitute professional income under section 44ADA, not business receipts eligible for presumptive taxation under section 44AD.

43. ITA No. 3042/Mum./2026

Vidhya Vivek Padgaonkar v. ITO

A.Y.: 2024-25 Date of Order: 24.06.2026

Sections: 28(v), 40(b), 44AA, 44AD, 44ADA

Section 44AA(1) is inclusive in nature and is not confined only to professions expressly named therein. What is material is character of activity undertaken and degree of specialised knowledge required for its performance. Accordingly, assessee entrusted with functions requiring inherently specialised knowledge, expertise and intellectual application in the field of education was held to be governed by section 44ADA and not section 44AD of the Act.

The taxable event in the hands of the partner is the receipt or accrual of such remuneration. The operation of Section 40(b) is confined to computation of income in the hands of the firm and does not govern the taxability of the amount actually received by the partner.

FACTS I

The assessee filed her return of income declaring therein income from house property, income from services rendered to M/s Apeejay Education Society and remuneration received from Paddy Services LLP. The Assessing Offic