9911796707
TMI Blog2018 (5) TMI 1383X X X X Extracts X X X X X X X X Extracts X X X X ..... vey operations conducted on 02-02-2006 and scrutiny assessment U/s. 143(3) of the Act was computed on a total income of Rs. 37,96,220/-. In that assessment, AO has allowed remuneration of Rs. 13,00,290/- to the three members of the HUF for their services. On the reason that remuneration to co-parceners is not allowable U/s. 184 or U/s. 40(b) of the Act, proceedings were reopened U/s. 147 by issuance of notice U/s. 148 on 13-03-2013. In the re-assessment proceedings, inspite of objections from assessee, the remuneration paid to the three members were disallowed. 3. Before the Ld.CIT(A), it was the contention that the remuneration was paid to three persons, who are members of the HUF for their services rendered to the business and further, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AR further place reliance on the decision of the Hon'ble Supreme in the case of CIT Vs. Kelvinator of India Limited (320 ITR 561). The contention of the appellant's holds water. It is also to note that the appellant's AR submitted that the Assessing Officer under the letter dated 21.05.2013 communicated the reasons stating that the approval from the JCIT was obtained, whereas approval of the Commissioner of Income-Tax was required. A plain reading of section 151 is reproduced as follows:- "For section 151 of the Income-tax Act, the following section shall be substituted with effect from the 1st day of June, 2015, namely:- "15.1. Sanction for issue of notice - (1) No notice shall be issued under section 148 by an Assessing Officer, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... btained from the CIT in support of the contention. It may be true that AO has obtained permission from the Ld.CIT but the fact is that assessment has been reopened after the end of four years from the relevant assessment year and there is no failure on the part of assessee in furnishing full and true disclosure of the information. The assessment U/s. 143(3) was completed after survey proceedings on the assessee's business premises. In view of that, it cannot be stated that assessee has not disclosed any information. The remuneration to the members of the HUF were paid for the services rendered in the business which is allowable U/s. 37(1) and invoking the provisions of Section 184 and Section 40(b) does not arise on the facts of the case at ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
