Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (7) TMI 280 - AT - Income TaxDisallowance u/s 80(IA)(10) r.w.s 10AA(9) - not claiming interest and remuneration on partners capital - CIT-A deleted the disallowance - assessee had taken undue benefits of Section 10AA by not claiming Interest ton Capital and Remuneration to partners which resulted increase in exempted profit of the assessee - whether the CIT(A) is justified in not appreciating the fact that by not providing interest and remuneration to the partners, the firm has claimed higher profits leading to higher claim of deduction u/s 10AA of the Act and thus, devoiding the revenue from due amount of tax? - HELD THAT:- We find that similar disallowances under section 80(IA) rws 10AA(9) on account of not claiming interest and remuneration on partners capital, was made by assessing officer in the assessment for A.Y. 2012-13.[2019 (5) TMI 1880 - ITAT SURAT] however, on appeal the disallowances were deleted by Ld. CIT(A) by following the order of jurisdictional high Court in Alidhara Taxpro Engineering (P) Ltd [2009 (3) TMI 74 - GUJARAT HIGH COURT] and decision of Tribunal in ACIT Vs Mukta Enterprises [2018 (12) TMI 597 - ITAT SURAT] as held 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 of the Act 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 of the Act. We are unable to see any valid reason to interfere with the same - Decided against revenue.
|