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2022 (7) TMI 1211 - AT - Income TaxRevision u/s 263 by CIT - remuneration paid to its working partners - such partners of the assessee firm is engaged in full time teaching profession, remuneration paid to her by the assessee firm is not allowable u/s 40A(2)(a) and as seen that the AO omitted to disallow the same in the assessment order and no enquiries were made in this regard during the assessment proceedings - HELD THAT:- As main contention of the assessee is that Smt.Dadi Anuradha is a teacher. After school working hours, she used to attend office for an administration work and verification of loan applications etc and is paid reasonable remuneration of Rs.3,80,000/- only and there is no bar under the law that the working partner should be full time working partner. Therefore, she is working as a part time / temporary teacher in the said school. Considering all, there is also possibility to attend the work during holidays and after school hours. Therefore, we are of the view that initiation of proceedings u/s 263 is not valid on this count. Hence, we set aside the order passed by the Ld.Pr.CIT u/s 263 and allow the grounds raised by the assessee.
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