Analysis of Section 44AA With Point 9(a) of form 3CD by Nishu Tulsawat

Hey friends  till Some months ago  from now Whenever I filled form 3CD, there is a point 9(a) that always create a confusion in my mind that if a business fulfils all the conditions of Section 44AA(2) despite that we fill “No” to the answer of this point. Why???? But now I am quite clear about the reason of above raised Question. I feels that there are some students like me who could not understand the provisions of this section till now, may this article will help you in Understanding the provisions.  Section 44AA of Income Tax Act deal with the provisions regarding maintenance of books of accounts under Income tax Act. 
As per section 44AA(1 ) “ persons carrying on any of the Profession as mentioned below are required to maintain such books of account and other documents as may enable the Assessing Officer to compute his total income in accordance with the provisions of this Act. , if yearly gross receipts of the profession exceeded Rs 150000 ”.
1) Legal
2) Medical
3)architectural
4)engineering
5) accountancy
6)technical consultancy
7)interior decoration
8)authorized representative
9)film artist
10)any other profession as is notified by the board  & further  
              As per section 44AA(2) “In relation to any other persons engaged in any other profession [not being a profession referred to in sub-section (1)] or carrying on any business shall keep and maintain such books of account and other documents as may enable the Assessing Officer to compute his total income in accordance with the provisions of this Act . ----  (i) if his income from business or profession exceeds   Rs. 120,000  or his total sales, turnover or gross receipts, as the case may be, in business or profession exceed or exceeds Rs. 10,00,000  in any one of the three years immediately preceding the previous year; or
(ii) where the business or profession is newly set up in any previous year , if his income from business or profession is likely to exceed  Rs. 120,000 or his total sales, turnover or gross receipts, as the case may be, in business or profession are or is likely to exceed  Rs. 10,00,000 rupees, during such previous year; or
(iii) where the profits and gains from the business are deemed to be the profits and gains of the assessee under “section 44AD or section 44AE or section 44AF”  or “section 44BB or section 44BBB”, as the case may be, and the assessee has claimed his income to be lower than the profits or gains so deemed to be the profits and gains of his business, as the case may be, during such previous year.  
The following clause (iv) shall be inserted after clause (iii) of sub- section (2) of section 44AA by the Finance (No. 2) Act, 2009, w.e.f. 1- 4-2011: 
(iv) where the profits and gains from the business are deemed to be the profits and gains of the assessee under section 44AD and he has claimed such income to be lower than the profits and gains so deemed to be the profits and gains of his business and his income exceeds the maximum amount which is not chargeable to income-tax during such previous year 
now the situation is, in both of the cases i.e 44AA(1) & 44AA(2) the assessee is required to maintain such books of accounts as may enable the assessing office to compute the total income in accordance of the provisions of the act . in other words the specified professions Covered u/s 44AA(1) & also Other professions & businesses which fulfils the conditions of Section 44AA(2) shall maintain the books in accordance of the provisions of the section.   Now take a look of point 9 th of Form 3CD 
9 (a) Whether books of accounts are prescribed under section 44AA, if yes, list of books so prescribed.
(b) Books of account maintained (In case books of account are maintained in a computer system mention the books of account generated by such computer.)
(c) List of books of account examined.  
Now the confusion is, according to the Section 44AA the assessee shall maintain the books of accounts that may enable the A.O. to compute his total income whether covered u/s 44AA(1) i.e Specified Profession OR u/s 44AA(2) i.e Businesses &  other Professions which fulfils the required conditions. 

SO ACCORDING TO THE ABOVE DISCUSSION THE POINT 9(A) SHOULD BE YES IN BOTH OF THE BOTH OF THE CASES WHETHER COVERED U/S 44AA(1) OR 44AA(2)
BUT in office whenever we fills 3CD of a profession Covered u/s 44AA(1), we fills YES IN 9(A) AND when we fills 3CD of a Business or other profession covered u/s 44AA(2) then we fills NO IN 9(A) WHY?????
        
Now the role of RULE 6F RULE 6F RULE 6F RULE 6F comes into the picture ----
AS per Rule 6F(1) – every person covered u/s 44AA(1) shall keep and maintain the books of account and other documents specified in Rule 6F(2). 
Rule 6F(2) The books of account and other documents referred to in sub-rule (1) shall be the following, namely:— 
(i) a cash book;
(ii) a journal, if the accounts are maintained according to the mercantile system of accounting;
(iii) a ledger;
(iv) carbon copies of bills, whether machine numbered or otherwise serially numbered, wherever such bills are issued by the person, and carbon copies or counterfoils of machine numbered or otherwise serially numbered receipts issued by him:   Provided that nothing in this clause shall apply in relation to sums not exceeding twenty-five rupees;]
(v) original bills wherever issued to the person and receipts in respect of expenditure incurred by the person or, where such bills and receipts are not issued and the expenditure incurred does not exceed fifty rupees, payment vouchers prepared and signed by the person 
 After Reading the Rule 6F,Now the situation is quite clear???
CONCLUSION
Books are not prescribed by section 44AA because section 44 AA says only that “maintain such books of accounts as may enable the assessing office to compute the total income in accordance of the provisions of the act” Rather books are prescribed by Rule 6F.
Since the Rule 6F prescribe books only for the persons covered u/s 44AA(1) i.e. specified professions that is why there can b say that in section 44 AA , books are prescribed only for the specified professions that is covered u/s 44AA(1) only.
This is the logic behind the point 9th of form 3CD......
Whenever we fills 3CD of a business covered u/s 44AA(2), we fills “NO” because in section 44AA, the books are prescribed only for professions covered u/s 44AA(1). 
Hey friends, I tried my best to make you understand the provisions of this section. If you have a query specifically related to this article you may contact me at nishu.saa@gmail.com . 
                           Thanking you............