Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (5) TMI 202 - AT - Income TaxReopening of assessment - correctness of the computation of section 80IB deduction - Both the lower authorities hold that the assessee has not provided for interest on partners capital as well as their remuneration despite specific clauses in its partnership - Held that:- Taking into the account the fact that assessee-firm interest on partners’ capital and remuneration clauses comprise of mutual agreement provisions as well as the fact that it has not paid or provided for any amount in the books to conclude that the assessee’s partners had decided not to charge any interest or remuneration since the relevant clauses hereinabove are not of mandatory nature. We accept assessee’s arguments. The Revenue’s submissions justifying action of the lower authorities on this fundamental construction of assessee’s partnership deed clauses stand rejected. We delete the impugned disallowance of interest on partners’ capital and remuneration in question. Since we have decided this first fundamental issue of partnership deed’s interpretation against the Revenue, other arguments narrated in preceding paragraphs are rendered academic. - Decided in favour of assessee
|