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2019 (9) TMI 436 - AT - Income TaxDeduction u/section 80(IA)(10) r.w.s 10AA(9) - AO made the additions on the ground that, by giving deductions of interest on capital and remuneration to partner of the assessee firm after finding that the assessee had taken undue benefits of section 10AA by not claiming interest on capital and remuneration to partners which resulted in increase in exempted profit - HELD THAT:- In the present case, the assessee firm has not charged any interest and remuneration as per partnership deed does not prescribed so, therefore, the assessee firm cannot be compelled to charge interest or remuneration. CIT(A) was right in observing that the disallowance made by the AO on account of non-provision of interest and remuneration of cannot be disallowed under section 10AA(9) - disallowances so made by the AO are found to be erroneous and incorrect in law and facts as in the peculiar facts of the present case the partnership deed clearly lays down that no interest and remuneration is payable and hence, the CIT (A) was right in deleting the disallowance made by the AO on account of non-provision of interest and remuneration from amount of deduction under section 80IA(10) read with section 10AA(9) of the Act. The issue is covered by the decision Co-ordinate Bench of ITAT, Surat in favour of the assessee in the case of Ruta Jewels [2018 (10) TMI 1686 - ITAT SURAT] and no reason to deviate with the finding of ld. CIT(A), accordingly same is upheld. Thus, the grounds of appeal of the Revenue are dismissed
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