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2015 (9) TMI 656 - AT - Income TaxDisallowance treating remuneration paid to the partners under the provisions of section 40(b)(v) as excessive - whether the interest income is to be considered for the purpose of calculation of remuneration to the partners? - Held that:- On perusing the assessment order, we find that though the A.O has stated that the interest of ₹ 8,30,979/- is in the nature of non business income and taxable under the head “income from other sources” but no such adjustment has been made by him while computing the income from business meaning thereby that he has accepted interest income as business income. We further find that interest receipts in A.Y. 07-08 & 09-10 were considered as non business income by the A.O. and thereafter after excluding it, the remuneration was worked u/s. 40(b)(v) but the addition made by the A.O was deleted by ld. CIT(A) . Before us, no material has been placed on record by the Revenue to demonstrate that the decision of the ld. CIT(A) for A.Y.20 07-08 & 2009-10 has not been accepted by the Revenue. See case of Md. Serajuddin & Brothers [2012 (8) TMI 104 - CALCUTTA HIGH COURT] A.O was not justified in working out the claim of remuneration after excluding the interest income. We thus direct the A.O to include the interest income while calculating the remuneration payable to partner u/s. 40(b)(v) of the Act - Decided in favour of assessee.
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