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2014 (12) TMI 508 - ITAT JAIPURBonus paid to the fourth partner disallowed – Held that:- It is neither disputed nor established by the authorities below that all the four partners were actively engaged in the conduct of the business of the firm and thus, are the working partners - although the firm was constituted in A.Y. 2004-05 and the assessee firm has been making this claim right since AY 2004-05 but all along the revenue has been accepting such a claim even in the assessment made under scrutiny hence there was no justification to make a departure from the settled position in the past without bringing any material change in the facts and the circumstances of the case in this year - the issue is revenue is neutral in as much as even assuming a certain part of the claimed remuneration is disallowed in the hands of the firm, it cannot be treated to be an income from business in the hands of the partners and a necessary safeguard has already been provided under the proviso below the Sec.28(v) against the double taxation of the same income - even if the disallowance so made is upheld, deduction to that extent has to be allowed in the hands of the partners/s - revenue shall not be put to any loss if the remuneration as claimed, is allowed in the hands of the assessee firm – there was no justification in the disallowance made u/s 40(b) is set aside – Decided in favour of assessee.
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