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2019 (10) TMI 341 - AT - Income TaxDisallowance of Salary paid to the partner - Increase in the salary - Support by the terms of partnership deed - HELD THAT:- Contention of the assessee that vide Clause 10 of the partnership deed dt. 01/12/2002 the salary may be increased or decreased from time to time in the interest of partnership business has not been rebutted. It is also noticed that the A.O. himself admitted in the assessment order that the assessee furnished addendum partnership deed which has been reproduced at page no. 6 of the said assessment order. In the said addendum to partnership deed it has been mentioned that the partnership deed was executed on 01/12/2002 and w.e.f from 01/04/2011, the remuneration to the partners had been increased to ₹ 12,000 each per month. A.O. did not accept the said addendum deed for the reasons that the Stamp Papers on which the addendum to partnership deed was written was dt. 01/12/2002. It cannot be a ground to disallow the claim of the assessee particularly when the remuneration claimed by the partners was not in excess of the amount prescribed in Clause (b) to Section 40 - claim of the assessee that in the subsequent years the increased salary had been accepted was not rebutted, therefore by considering the totality of the facts the disallowance made by the A.O. and sustained by the Ld. CIT(A) is deleted. - Decided in favour of assessee Non deduction of tds - Retainership expenses paid on account of Technical and Professional services to two persons - assessee submitted that the tax had not been deducted on retainership fee as the services were covered under section 192B and not under section 194C - contention of the assessee was that the payments were made during the festive season and it was remuneration in respect of sales boys who were not the regular sales employees of the assessee, both those persons filed their Income Tax Return and claimed it - HELD THAT:- In the present case the returns of income were furnished by Shri Daljeet Singh on 30/03/2013 wherein the income of ₹ 1,20,000/- has been shown as salary received from the assessee. Similarly Shri Pawan Kumar furnished the return of income on 07/05/2013 and had shown the salary of ₹ 1,80,000/- received from the assessee. In the present case when the income shown by the recipients had been accepted, there was no reason to doubt explanation given by the Assessee. Therefore, by considering the totality of the facts deem it appropriate to delete the addition made by the A.O. and sustained by the Ld.CIT(A). - Decided in favour of assessee
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