Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (3) TMI 523 - AT - Income TaxRevision u/s 263 - disallowance u/s 40(a)(ia) - Held that:- As per the provisions of I.T. Act, the interest and remuneration is required to be allowed as evidenced by the partnership deed. Since the partnership deed filed in the paper book permits the payment of remuneration and interest, the AO has not committed any error in allowing the interest and remuneration paid to the partners from the estimated income. Hence the assessment made by the AO in estimation of income is neither erroneous nor prejudicial to the interest of the revenue giving scope for invoking the jurisdiction u/s 263. Similarly, in case, the assessment is completed u/s 143(3) by rejecting the books of accounts and estimating the income as held in the case of Indwell Constructions Ltd. (1998 (3) TMI 121 - ANDHRA PRADESH High Court), no other disallowance is required to be made. The view of the CIT that the AO has not considered the disallowance u/s 40(a)(ia) is also a difference of opinion and does not give any possibility for invoking the jurisdiction u/s 263. Hence, we set aside the orders of the Ld.CIT passed u/s 263 and allow the appeals of the assessee.
|