TMI Blog2017 (11) TMI 199X X X X Extracts X X X X X X X X Extracts X X X X ..... eration received by the partners cannot be permitted. The deduction of interest paid can only be permitted if the assessee is receiving the interest income from the capital contribution made by him. In view thereof, we find that the ground raised by the assessee for allowing the deduction is without any merit. Accordingly, we dismiss this ground. - I.T.A No.708/Bang/2014 - - - Dated:- 2-11-2017 - SHRI. JASON P. BOAZ, ACCOUNTANT MEMBER AND SHRI. LALIT KUMAR, JUDICIAL MEMBER For The Assessee : Shri. Narendra Sharma, Advocate For The Revenue : Shri. M. K. Biju, JCIT ORDER PER LALIET KUMAR, JUDICIAL MEMBER : The assessee filed the present appeal aggrieved by the order passed by the CIT (A), dt.26.02.2014, for the assessment year 2009- 10. Though various grounds have been raised by the assessee, we are summarising the grounds into two main grounds, as under : i) That the lower authorities are justified in making addition of ₹ 32 lakhs u/s.68 of the Act ; and ii) That the lower authorities erred in disallowing the adjustment of interest paid of an amount of ₹ 9,87,295/-, towards remuneration received by the assessee during the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 77; 32 lakhs. 5.1 Deposit of ₹ 10,00,000/- made on 22.08.2008 : In this regard the assessee has submitted that the assessee was having opening balance as on 01.08.2008 of a sum of ₹ 10 lakhs and the deposit made into the bank on 22.08.2008 was out of the available cash shown in opening balance. We are of the opinion that this contention of the assessee is in accordance with the judgment of the Hon ble jurisdictional High Court in the matter of P. Padmavathi v. ITO dt.06.10.2010 in ITA No.414 of 2009, wherein it was held as under : 12. In this case, it is not in dispute that the assessee withdrew a sum of ₹ 5,00,000/- on 18.08.2003 and ₹ 2,00,000/- on 20.08.2003 from her savings account. She is an agriculturist and she had agricultural income. Once she demonstrated that she was in possession of ₹ 7,00,000/- cash plus agricultural income on her hands, if after 40 days, a cash deposit is made to the extent of about ₹ 5,20,000/- towards loan account, it cannot be said that the source of the said deposit is not properly explained. Merely because there is a delay of 40 days from the date of withdrawal of the money from the bank account to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pening balance of ₹ 3,23,864/- was there on 01.02.2009. When the opening balance was available with the assessee to the amount of ₹ 3,23,864/-. Then we had to resume to assume that the assessee was having with sufficient means to deposit an amount of ₹ 5lak in the bank account and therefore, therefore the assessee was able to explain this deposit of ₹ 5 lakhs also. Accordingly the addition made by the officers below to in an amount of ₹ 5 lakh is liable to be set aside and we hold so. 5.3 With regard to deposit of ₹ 12 lakhs on 11.02.2009, as the assessee demonstrated that the said amount of ₹ 12 lakhs was withdrawn by the assessee from one bank and deposited in another account. Thus the assessee was able to demonstrate and explain the availability of cash either in the form of opening balance or in the form of withdrawal from the bank, therefore the assessee has explained the deposit of ₹ 12 lakhs. The authorities below failed to bring on record any evidence contrary to the fact that the cash was not available with the assessee . Accordingly the addition made by the officers below to in an amount of ₹ 12 lakh is liable to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In the present assessment year the assessee had received a sum of ₹ 14,40,512/- and remuneration of ₹ 9,87,295/-. Clause (5) of the partnership deed dt.06.10.1994 provides for the remuneration of the partners. The same is reproduced herein below : 5. Remuneration to Pareners : All the partners shall be working partners of the firm being actively engaged in the conduct of the business of the firm and they shall be paid remuneration for the same. The total remuneration payable to all the partners put together shall be the aggregate of the amounts mentioned under A, B C below : A On the first ₹ 75,000/- of the book profits of the firm or in the case of loss Rs.50,000/- or at the rate of 90% of the book profit whichever is more B Next ₹ 75,000/- of the book profits 60% C Balance of book profits 40% Book Profits : The term book profits means nett profits in the profit and loss account of the firm computed in the manner laid down ..... X X X X Extracts X X X X X X X X Extracts X X X X
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