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2022 (10) TMI 1113 - ITAT AHMEDABADRectification order u/s 154 - Addition is made as other income while computing allowable remuneration - HELD THAT:- Remuneration of partners upon which the rectification order was passed thereby making addition, is related to the partners’ remuneration and the same is taxable in the hands of the partners for income from other sources and not in the hands of the partnership firm i.e. assessee firm herein. The delay before the CIT(A) was also explained by the assessee as the assessee did not receive the assessment order and received the recovery notice of outstanding demand. In fact, the CIT(A) has not taken into account whether the rectification order was received by the assessee or not and did not give any finding as to the service of the rectification order. Thus, the CIT(A) was not right in dismissing the appeal. Besides this before us, AR has explained the case on merit and from the merit of the case it appears that the assessee has explained all the details related to the business expenses and the same are incurred during the business of the assessee firm. Therefore, the rectification order passed by the AO is not just and proper. Hence, appeal of the assessee is allowed.
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