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2012 (7) TMI 327 - ITAT CUTTACKDisallowance u/s 40(b) - Remuneration to be paid to the partners – Held that:- Refusal to allow remuneration to the partners would result in holding the firm as un-registered firm which was not the case of the Assessing Officer. Having set a limit on firms income, the salary or remuneration to the partners can be varied by passing necessary resolution and would have to be inscribed in the books of account as such - Assessing Officer directed to allow the claim of remuneration paid to the partners. Claim of expenditure under head Drivers’ Commission - TDS u/s 194H - assessee was asked by the contractee to include the amounts paid to the drivers by them so that the payments under the transport charges – Held that:- Transportation charges receipts included payment to the drivers for the safe delivery of goods of the contractee was as per the terms of the contract therefore could neither be held disallowable in isolation in the hands of the assessee for the simple reason that the amount was separately shown claimed in the P & L account but was actually forming part of the bills raised by the contractee who deducted tax at source on payment to the assessee in accordance with the provisions of the I.T.Act – disallowance deleted
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