Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (6) TMI 841 - AT - Income TaxTaxability of interest income in the hands of Partner instead of Partnership firm - Allegation that assessee did not disclosed the receipt of Interest in his return of income - TDS on the interest amount received against NSC and saving account - HELD THAT:- It is not disputed that the licence of the assessee was utilised by partnership firm and all the receipts, TDS, interest and other sources of revenue were being shown in the hands of the firm, M/s. Biraja Construction. This practice is being followed by the assessee and partnership firm consistently from year to year and accepted by the Revenue, which is supported by the order of the Tribunal in assessee's own case for the assessment year 2009-2010 wherein, it has been held that the contract receipt in the name of the partner was to be considered as the amount received by the firm. Since amount has already been offered for taxation in the hands of the firm M/s. Biraja Construction, the said amount to be taxed in the hands of the individual partner i.e. assessee would amount to double taxation, which is not permissible under law. Even otherwise, there is no provision of law to deduct TDS on the interest amount received against NSC and saving account. Hence, we direct the AO to delete the amount and allow the appeal of the assessee.
|