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2017 (2) TMI 1087 - AT - Income TaxReopening of assessment - addition invoking the provisions of Section 40(b) - remuneration paid to partner - Held that:- Any further disallowance made by the AO is not sustainable. First of all, the partnership deed specifies the manner in which the remuneration has to be paid to working partners. AO in the assessment order u/s. 143(3) has examined the claim and disallowed the amount paid to nonworking partner. Thus, the issue presently considered is change of opinion by the same officer. In fact, the circular relied on by the AO was issued way back on 25-03-1996 and has to be very much in the knowledge of the AO when assessment was completed in December 2011. Thus, the reopening and disallowance of the amount is not permissible on these facts. - Decided in favour of assessee.
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