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TMI Blog2018 (12) TMI 597X X X X Extracts X X X X X X X X Extracts X X X X ..... filed. However, on perusal of record, we find that the appeal may be decided in absence of the assessee respondent after hearing the arguments of ld. DR on behalf of Revenue. 3. Grounds raised by the Revenue reads as follows: "1. Whether on the fact and circumstances of the case and in law, the Ld.CIT(A) was justified in deleting the disallowance made by the Assessing Officer of exemption claimed u/s 10AA by the assessee in respect of Turnover for trading and treated entire sum as taxable income by not giving any specific findings in his decision? 2. Whether on the fact and circumstance of the case and in law, the Ld.CIT(A) was justified in deleting the disallowance made by the Assessing Officer by invoking provisions of Section 80(IA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in exempted profit of the assessee. He further submitted that the Ld.CIT(A) was also not justified in not appreciating the fact that by not providing interest and remuneration to the partners, the firm has claimed higher profits leading to higher claim of deduction u/s 10AA of the Act and thus, depriving the revenue from due amount of tax. Finally, the ld. DR submitted that the AO made disallowance of benefit of s. 10AA of the Act to the assessee on reasonable and justified ground which has been deleted by the ld. CIT(A) without any sustainable ground. Therefore, impugned order may kindly be set aside by restoring that of the AO. 5. We also considered the contention of the assessee-respondent before the authorities below as noted in the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the Jurisdictional High Court clearly held that mere incorporation of interest on partners capital account and remuneration does not signify that the same are mandatory in nature. As we have noted above, in the present case the appellant has not charged any interest and remuneration asper partnership deed therefore, the appellant firm cannot be compelled to charge interest or rumuneration. Therefore, we are inclined to hold the ld. CIT(A) was right in observing that the disallowance made by the AO on account of non provision of interest and remuneration of s. 10AA of the Act deduction is erroneous and incorrect and law and facts as in the peculiar facts of the present case the partnership deed clearly lays down that no interest and remune ..... X X X X Extracts X X X X X X X X Extracts X X X X
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