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2016 (1) TMI 244 - AT - Income TaxStatus of firm - copy of partnership deed has not furnished alongwith return of income which is mandatory as per Section 184(2) - Whether the certified copy of the partnership deed was required to be filed along with the return of income or whether the same could be filed before the AO before he concludes the assessment proceedings? - Held that:- Following the coordinate Bench in the case of Ishar Das Sahni & Sons vs. DCIT (2000 (5) TMI 167 - ITAT DELHI-A ), we find no infirmity in the order of the ld. CIT(A). We therefore uphold the status of the assessee as a “firm” as the assessee has complied with the provisions of Section 184(2) of the Act. Consequent thereto, the disallowance of ₹ 8,23,506/- on account of claim of interest and remunerations paid to partners doesn’t stand and the same should be allowed in the hands of the assessee taxed in the status of the firm.- Decided against revenue Disallowance on account of telephone expense - CIT(A) restricted disallowance - Held that:- The Assessing Officer disallowed telephone expenses of ₹ 81,336/-on the ground that the telephones were not in the name of the assessee. One of the mobile was in the name of Suraj Medical (Prop. Lucky Batla). Similarly, other telephones were also not in the name of assessee. The telephones were in the name of persons who were doing their own business and primary use of telephone was obviously for their own purposes. However, the disallowance has to be reasonable, thus a disallowance of ₹ 50,000/- is reasonable. - Decided against revenue
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