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2017 (4) TMI 1341 - AT - Income TaxDisallowance of partners remuneration - whether excess remuneration should not be disallowed as there were brought forward losses which were to be adjusted before computing the book profit for the allowability of remuneration to partners? - Held that:- The book profit as shown in the Profit and Loss account has to be computed in the manner laid down in Chapter IV-D. Therefore, in our considered opinion, both the lower authorities have erred in setting off brought forward losses first in computing the book profit for the allowability of remuneration to partners. In our understanding of the law, the remuneration to partners should be first allowed and thereafter brought forward business losses should be set off. We, therefore, set aside the findings of the CIT(A) and direct the A. O. to delete the disallowance.
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