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2016 (8) TMI 274 - HC - Income TaxReopening of assessment - Deduction under section 80IB(10) - Held that:- Whether it was compulsory for the firm to pay interest and remuneration to the partners. In the context of limiting the claim of the partnership firm for reduction under section 80IB(10) of the Act, this issue may become relevant. We are however, not concerned with the question of non payment of interest or remuneration to the partners since the validity of the notice needs to be examined from the vital angle that the same having been issued beyond the period of four years. In this context, the reasons record that upon going through which, it was seen by the Assessing Officer that on the outstanding balance of the capital account of the partners, the firm had not provided any interest nor paid remuneration to the partners. Thus, the Assessing Officer gathered such information from the materials on record. There was no failure on the part of the assessee to disclose material facts. Respective notices for reopening issued beyond a period of four years are therefore, quashed. Both petitions are allowed and disposed of.
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