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2017 (5) TMI 1684 - GUJARAT HIGH COURTHigher claim of deduction u/s 80IB - not providing interest and remuneration to the partners - Whether Section 80IB (10) enables AO to re-compute the profit of undertaking claiming deduction u/s 80IB i.e. the partnership firm as in the present case and not the case of partner’s admissibility towards interest/ remuneration as held in the case of Smt. Mala Tandon [2011 (6) TMI 855 - ITAT AMRITSAR] ? - HELD THAT:- On interpretation of the partnership agreement and considering the wish of the partners reflected in the partnership deed, not to pay /charge interest on the partners capital and the remuneration, the learned tribunal has rightly deleted the disallowance made by AO with respect to the deduction claimed u/s 80IB. As rightly observed by tribunal, mere incorporation of interest on the partners’ capital and remuneration does not signify that the same are mandatory in nature. We concur with the view taken by the learned tribunal. We see no reason to interfere with the impugned judgment and order passed by the learned tribunal. - decided against revenue.
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