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2017 (10) TMI 1258 - ITAT JAIPURNon-deduction of tax in respect of the interest paid to financial institutions - Held that:- During the course of hearing, Ld. Counsel for the assessee submitted that the financial institutions have disclosed this receipt in their return of income. This fact requires to be verified at the end of the AO. We therefore, set aside this issue to the file of the AO to verify whether recipient has paid tax on such receipt. In case, the recipient has paid taxes and disclosed receipts in their respective income tax return the AO would delete the disallowance. This ground of appeal is allowed for statistical purpose. Disallowance in respect of remuneration paid to partner Shri Rajiv Jain - Held that:- Since the partnership deed allows expenditure of remuneration paid to the partners in the ratio as recorded in the partnership deed paying less to one partner and paying in excessive of the ratio so fixed, in our considered view would not help the assessee. The only explanation of the assessee is that the other partner has no objection to this effect. In our view, there is no ambiguity into the provisions, if any remuneration is paid in excess of the amount mentioned or the percentage mentioned in the partnership deed that is not allowable expenditure. Therefore, we do not see any infirmity into the order of the Ld. CIT(A), same is hereby affirmed. This ground of appeal is dismissed. Addition on account of interest income from M/s Yash Pharma - accrual of income - Held that:- Since the assessee has been following mercantile system of accounting. Hence, the receipt is requires to be tax on accrual basis. Therefore, we do not see any infirmity finding into the order of the Ld. CIT(A), same is hereby affirmed. This Ground of assessee’s appeal is dismissed.
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