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2010 (10) TMI 544 - ITAT, COCHINDisallowance - the assessee is engaged in the hotel business, running a bar attached thereto - The question that requires to be answered does not concern the registration of the firm, which is no longer applicable, but whether the provisions of section 185 would become applicable or not for the relevant years - The partnership agreement in the instant case is violative of the provisions of State Abkari Act and is, thus, illegal - in the absence of any change in its constitution, stand to be assessed as such for the current year as well, would also not help as the provision of section 184, as afore-stated, would be applicable only to a partnership firm, i.e., one which is so under the partnership law, and which the assessee is not - the payment of remuneration by it to the `partners’ shall be covered by the provisions of section 37(1) read with section 40(ba) and, resultantly, it shall not be entitled to deduction in its respect The onus to prove its return of income, and the claim/s preferred thereby, including u/s. 37(1) of the Act is on the assessee - It has not explained the circumstances under which it was required to book the expenditure in such a manner, which would normally be only on the basis of bills or vouchers raised by the parties who had rendered the corresponding services for which, and in whose favour, the expenditure is incurred - Appeal is allowed by way of remand
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