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2018 (5) TMI 628 - AT - Income TaxEstimation of net profit - Rate of estimation of income in the hands of the firm - contention of the learned AR is that while estimating the profit a separate deduction is to be given for interest and salary paid to the partners of the assessee - Held that:- As decided in M/s. Adarsh Construction [2015 (3) TMI 1318 - ITAT HYDERABAD] it is only the method of assessing the income of the assessee firm which either has to be done by accepting the voluntary return filed under section 139(1) or it has to be regularly assessed under section 143(3) or best judgment assessment is to be made under section 144. The final outcome of the assessment of the income of the assessee firm calls for consequential imposition of tax and realisation thereof. The statutory deductions thus which are available to the assessee firm cannot be taken away of snatched away from the firm merely because their books of account have been rejected and best judgment assessment has been made’ Salary and interest, which is given to the partners in terms of the partnership deed, the tax liability of the said amount shifts upon the partners and cannot be taken as tax liability of the firm. The applicability of section 28(v) cannot be excluded in the matter of best judgement assessment in respect of an assessee firm. It was the specific case of the assessee that the partners were working partners and they were entitled to salary and interest, as per terms of the deed in accordance with section 40(b). - Decided against revenue. See Indwell Construction [1998 (3) TMI 121 - ANDHRA PRADESH High Court] Addition made on account of payment of EPF beyond specified due date - Non-payment of employees contribution to the account of Government within due date - Held that:- CIT(A) correctly considering the submissions of the assessee restricted the addition, upto ₹ 20,498/- and allowed the remaining portion of the addition on being satisfied the said contribution was paid before the due date of filing of the return of income in terms of the decision of the Hon’ble Supreme Court in the case of Alom Extrusion Ltd. [2009 (11) TMI 27 - SUPREME COURT ]
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