Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2014 (12) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (12) TMI 847 - HC - Income TaxEstimation of NP @ 11.5% against 12.5% - Grant of deduction on account of partners’ capital and salary to partners and also interest and financial charges – Whether in an assessment made by an AO u/s 145 and 144, deductions provided for u/s 30 to 38 of the Act are permissible - Held that:- There is evidence to show that the AO himself was not consistent - If in fact, the exercise undertaken u/s 145 and 144 of the Act is so comprehensive, there was no occasion to allow any deduction at all - depreciation u/s 32 was allowed by him, in the order of assessment itself - Secondly, none of those two sections contain any provision to the effect that the deductions u/s 32 to 38 are deemed to have been made - once a provision of that nature is not incorporated u/s 144 and 145 of the Act, the contention of the revenue cannot be accepted - once it was held that even where the assessment is done u/s 145 of the Act, normal deductions are to be allowed, there is no way that the AO could have denied deduction of the salaries to the partners and interest on financial charges - It is not even mentioned that the claims are not factually correct – thus, the order of the Tribunal is upheld - Decided against revenue.
|