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2018 (8) TMI 2082 - AT - Income TaxDisallowance being the amount paid by the assessee-firm to Resident partner as reimbursement towards running and maintenance of motor car, maintenance of consultation room at his residence and entertainment expenses for clients at the consultation room - assessee is a partnership firm of advocates practising at the Hon’ble Supreme Court of India - AO opined that the partnership firm can legitimately claim deduction on account of interest and salary to partners subject to the limits u/s 40(b) of the Act and, hence, such expenses incurred were not deductible - HELD THAT:- Similar disallowance of Rs.6 lac was made by the Assessing Officer in the assessment for the immediately preceding assessment year, namely, 2010-11, which stood affirmed in the first appeal. The matter came up for consideration before the Tribunal. Vide order dated 08.03.2016, the Tribunal, [2016 (3) TMI 814 - ITAT DELHI] has restored the matter to the file of Assessing Officer for deciding it afresh after giving certain directions. Since the facts and circumstances of the instant year are mutatis mutandis similar to those of the immediately preceding year, respectfully following the precedent, we set aside the impugned order to this extent and remit the matter to the file of the Assessing Officer for deciding this issue afresh in the hue of the observations made by the Tribunal for the preceding year. Assessee appeal is allowed for statistical purposes.
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