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2023 (4) TMI 887 - AT - Income TaxDisallowance u/s.40(b) - remuneration paid to partners - requirement of discloser in Clause 21(c) of Form 3CD - claim for deduction was disallowed for the reason that the assessee firm had failed to mention Clause 21(c) of Form 3CD of his audit report the amount of remuneration that was admissible u/s. 40(b)/40(ba) - HELD THAT:- Now when Clause 21(c), inter alia, envisages mentioning of the amount of remuneration that is inadmissible u/s.40(b) of the Act, therefore, no adverse inferences could have been drawn for the reason that the assessee firm had failed to make mention of the amount admissible under the said statutory provision. Although the details referred to in Clause 21(c) does make a reference of both the amounts admissible and inadmissible, but a careful perusal of the same reveals that the said details are sought only as regards the expenses therein set out which are inadmissible u/ss.40(b)/40(ba) of the Act. On the basis above no infirmity emerges from the non-mentioning of the amount of remuneration paid by the assessee firm to its partners in Clause 21(c). Unable to persuade to subscribe to the view taken by the lower authorities who had disallowed the assessee’s claim for deduction of remuneration under sec. 40(b) - Decided in favour of assessee.
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