TMI Blog2015 (10) TMI 378X X X X Extracts X X X X X X X X Extracts X X X X ..... e book profit including interest income on FDRs etc. as claimed. The impugned disallowance made U/s 40(b) of the Act is directed to be deleted. Hence this ground is decided in favour of the assessee. - I.T.A. No. 185/JP/2012 - - - Dated:- 28-8-2014 - SHRI R.P. TOLANI AND SHRI T.R. MEENA, JJ. For the Appellant : Shri Subhash Chandra. For the Respondent : Shri Mahendra Gargia ORDER Per: T R Meena: This is an appeal filed by the Revenue against the order dated 20/12/2011 of the learned C.I.T.(A), Kota for the A.Y. 2008-09. 2. The sole ground of appeal is against deleting the disallowance of ₹ 2,30,00,796/- made U/s 40b(v)(2) of the Income Tax Act, 1961 (hereinafter referred as the Act). The learned Assessin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee's ground and the orders of the Assessing Officer/CIT(A) were confirmed. It is further clarified that M/s Allen Carrier Institute was admittedly engaged in the primary business of imparting coaching for competitive exams like CPMT, RPMT and other State PMTs. The earning of interest from bank FDRs etc. had never be a part of business of the assessee as the assessee was not engaged in the business of lending or borrowing money and earning interest thereon. The FDRs were not made as a business necessity without which the business of the assessee could not been run and in fact these FDRs are made out of surplus fund available with assessee as earned through primary business of imparting coaching to the aspirants. The learned Assessin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ). In the course of assessment proceedings, the A.O. noticed that the assessee has shown interest on bank FDRs amounting to ₹ 5,72,23,513/- and other interest of ₹ 15,34,921/- and remuneration of partners has been calculated on the basis of book profit including interest on bank FDRs and other interest. Treating the interest from bank FDRs and other interest as income from other sources, the A.O. recomputed the book profits and the allowable remuneration to partners was determined at ₹ 5,38,45,124/- and disallowed the excess claim of partner's remuneration of ₹ 2,30,00,796/-. The Hon'ble ITAT following its decision in the case of S.P. Equipment 33 DTR 265 (Jp.) directed the A.O. t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee's own case for A.Y. 2005-06 in ITA No. 414/JP/2009 order dated 26/2/2010 had decided this issue in favour of the assessee, which was originally decided against the assessee. The Coordinate Bench allowed the M.A. petition filed by the assessee and recalled the assessee's original order wherein the assessee's appeal was dismissed. Finally, the Coordinate Bench had allowed the assessee's appeal. Learned A.R. further argued that now this ground of appeal is covered by the decision of Hon'ble ITAT Bench for A.Ys. 2002-03, 2004-05 and 2005-06. It is further argued that the Hon'ble ITAT has considered various decisions on this issue, which is reproduced for sake for convenience: i. ACIT Vs. Seth Brothers (200 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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