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2018 (12) TMI 597 - AT - Income TaxDisallowance of exemption claimed u/s 10AA - Turnover for trading and treated entire sum as taxable income by not giving any specific findings - Held that:- In the present case undisputedly in the partnership deed there is no clause providing payment of interest on capital and remuneration to the partners therefore, CIT(A) was right in denying application of order of ITAT, Rajkot in the case of Meridian Impex [2013 (9) TMI 605 - ITAT RAJKOT] in favour of the Revenue in the present case having distinct and dissimilar facts and circumstances. In the present case the appellant has not charged any interest and remuneration as per partnership deed therefore, the appellant firm cannot be compelled to charge interest or rumuneration. Therefore, we are inclined to hold the CIT(A) was right in observing that the disallowance made by the AO on account of non provision of interest and remuneration of s.10AA deduction is erroneous and incorrect and law and facts as in the peculiar facts of the present case the partnership deed clearly lays down that no interest and remuneration is payable and hence, the first appellate authority right in deleting the disallowance made by the AO on account of non provision of interest and remuneration from amount of deduction u/s. 10AA. No valid reason to interfere with the same and thus, we confirm the same. Accordingly, grounds of Revenue are dismissed.
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