TMI Blog2014 (7) TMI 211X X X X Extracts X X X X X X X X Extracts X X X X ..... is hardly tenable on the basis of the facts on record - it is even not possible to say conclusively if any interest income has at all been earned, except perhaps for the interest realized at rate/s in excess of that at which the moneys are borrowed – Decided in favour of Assessee. - I.T.A. No. 1437/Mum/2013 - - - Dated:- 13-6-2014 - Shri Sanjay Arora, AM And Shri Amit Shukla, JM,JJ. For the Appellant : Shri Bhavesh R. Majithia For the Respondent : Shri Maurya Pratap ORDER Per Sanjay Arora, A. M.: This is an Appeal by the Assessee directed against the Order by the Commissioner of Income Tax (Appeals)-29, Mumbai ( CIT(A) for short) dated 14.12.2012, partly allowing the assessee s appeal contesting its asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ide parties, which surely could not be considered as a part of the assessee s business activity or as incidental thereto. The same was thus held as assessable as income from other sources, i.e., at ₹ 6,03,169/-, leading to a disallowance in respect of remuneration to partners being restricted to ₹ 2,40,919/-. Aggrieved, the assessee is in second appeal. 3. We have heard the parties, and perused the material on record. 3.1 We are unable to accept the argument advanced by the ld. Authorized Representative (AR) with reference to Explanation 1 to section 40(b)(v), i.e., that notwithstanding a part of the interest income being assessable as income from other sources, it would yet not impact the quantum of remuneration allowable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 881 (SC); Bharat Commerce and Industries Ltd vs. CIT [1998] 230 ITR 733 (SC)), in the present case is income from other sources is hardly tenable on the basis of the facts on record; we, rather, finding that it is even not possible to say conclusively if any interest income has at all been earned, except perhaps for the interest realized at rate/s in excess of that at which the moneys are borrowed. 3.3 Under the circumstances, we are unable to accept the Revenue s stand. Needless to add, the remuneration to individual partners, being assessable at the amount as actually allowed in the assessment proceedings of the payer-firm, shall stand to be correspondingly revised. We decide accordingly. 4. In the result, the assessee s appeal is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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