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2012 (6) TMI 537 - AT - Income TaxRe-opening of its assessment - change of opinion by the Assessing Officer - assessment having been completed in the first instance u/s. 143(3) of the Act by examining all the relevant aspects; the 'profit and loss account' as well as the 'tax audit report' u/s. 44AB of the Act, filed along with the return of income, duly disclosing both the interest received from the bank as well as the quantum of remuneration allowed to the partners, i.e., the two facts which constitute the basis of the re-opening of the assessment - held that:- the assessment stands re-opened within four years of the commencement of the relevant assessment year, so that the assessee's insistence on proper disclosure would not be of any relevance. Interest received from the bank - Applicability of section 40(b)(v) - remuneration of working partner - book profit - held that:- it would be entitled to deduction qua remuneration allowed to working partner/s by considering the said income as part of the 'book profit' under Explanation 3 to s. 40(b)(v). Book profit - consideration of income chargeable under the head income from other sources - held that:- The deduction qua the partner's remuneration is being claimed and, therefore, would stand to be allowed only in determining the income assessable u/c. IV-D, in which case it would automatically fall to be included in the 'book profit', and the assessee allowed its claim for remuneration allowed to the working partner/s with reference thereto - at the claimed/exigible amount, else not. The condition with reference to 'book profit', it may be appreciated, does not lay down any qualitative test, but only a quantitative one, so that the deduction, being in respect of expenditure to persons constituting the firm itself, is sought to be regulated by the Act. - The question as to whether 'book profit' would include income assessable under head of income other than that assessable Chapter IV-D, thus, does not arise for consideration, and the assessee's alternate ground is misconceived and misdirected.
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