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2021 (8) TMI 274 - AT - Income TaxDisallowance of the set off of the business loss surrendered income - Entitlement to claim set off of loss against income determined under section 115 BV - HELD THAT:- In view of the fact that the assessee had already introduced the transactions in their books of accounts in the name of property income from property dealing, it would not be reasonable to say that such income does not fall under any of the head of income or that such deemed income does not allow any set off of business losses. We are inclined to accept the contention of the assessee that the surrendered income, in respect of which the entries had already been made in the books of accounts of the assessee in relation to the property income from property dealing, amount to business income and it allows the set off of the business loss - We, therefore, direct the assessing officer to delete the disallowance of the set off of the business loss. Disallowance of salary paid to partners under section 40 (b) of the Act has to be worked out keeping in view the consequences of the deleting the disallowance of the set off of the business loss - HELD THAT:- We set aside the impugned order on this aspect, and remand issue to the file of the learned Assessing Officer to work out the maximum allowable salary to partners.
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