Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (9) TMI 260 - AT - Income TaxDisallowance of expenses made in respect of partners remuneration u/s.40(b) - undisclosed income - Held that:- It is an undisputed fact that during the course of survey, assessee had disclosed ₹ 1.75 crores as unaccounted income. We find that before the AO, assessee in the written submissions had stated that assessee-firm is engaged in only business of Green Plaza Project and it has only one source of income being construction activity. The aforesaid submission of the assessee has not been controverted by Revenue nor the Revenue has placed any material on record to demonstrate that assessee was having engaged in other than the business of construction. As in the case of Md.Serajuddin & Brothers vs. CIT [2012 (8) TMI 104 - CALCUTTA HIGH COURT] has held that even if the income from other sources is included in the Profit and Loss accounts, to ascertain the net profits qua book profit for computation of the remuneration of the partners, the same cannot be discarded. Thus we are of the view that no disallowance u/s.40(b) of the Act on account of remuneration and salary to partners can be made in the present case and thus the ground of assessee is allowed.
|