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TMI Blog2021 (5) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... the circumstances of the case and in law, the Ld. CIT (A) has erred in allowing deduction u/s.80IB of Rs. 11,94,40,454/- which was restricted to Rs. 3,49,32,928/- on account of allowable interest to partners and remuneration to partners by the A.O. The Ld. CIT (A) relied upon supplementary partnership deed which was not produced before the A.O. The additional evidences presented at the time of appellate proceedings ought to have been sent to the AO for examination & report but the AO never got an opportunity to examine the additional evidences. Thus, the Ld. CIT (A) has erred in deciding the case on the basis of additional evidences without giving opportunity to the AO to verify the same. [2] On the facts and in the circumstances of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 80IB(10) of the Act of Rs. 3.49 crore in the following manner: Particulars Amount (in Rs.) Interest on Partners capital 263185956 x 9% = 31582314 Profit eligible for remuneration 118839633 - 31582314 = 8725319 Remuneration to be provided to the partners as per 40(b) 52324391 Profit eligible for deduction u/s. 10AA in case of firm 118839633 - (31582314 +52324391) = 34932928 Excess deduction withdrawn 118839633 - 34932928 = 93906705 Accordingly, the excess claim on account of interest and remuneration amounting to Rs. 9,39,06,705/- is withdrawn and accordingly eligible deduction u/s.80IB(10) amounting to Rs. 3,49,32,928/- is allowed. 3. Subject to the above, a total income of the assessee is computed as under: Less: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e partners of assessee were not eligible to claim interest as well as remuneration to the partners. The AO has not considered the second partnership deed dated 01.04.2006. The ld.CIT(A) further held that in subsequent assessment years i.e. in A.Y. 2013-14, the AO himself has made reference of partnership deed dated 01.04.2006 [second partnership deed] and accepted the same and no disallowances on those issues i.e. interest and remuneration to partner was not made. On the basis of aforesaid observation and the ld.CIT(A) allowed the entire claim under section 80IB(10) of the Act. Aggrieved by the order of ld.CIT(A), the assessee has filed present appeal before us. 4. We have heard the submission of ld.CIT-DR for the Revenue and ld.Authorised ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onfirming the order of Tribunal] and in AL Reza Food vs. ITO in Income Tax Appeal No.633/AHD/2014 dated 13.03.2017. 6. We have considered the rival submission of both the parties and perused the order of Lower Authorities carefully. We have noted that the AO restricted the claim of assessee under section 80IB(10) of the Act by disallowing remuneration and interest to the partner. Before restricting / disallowing claim the AO has not issued show cause notice to the assessee. Before the ld.CIT(A), the assessee explained that the AO has not considered the partnership deed dated 01.04.2006 wherein the partners are not eligible for interest and remuneration. The ld.CIT(A) after considering the contents of partnership deed dated 01.04.2006 held ..... X X X X Extracts X X X X X X X X Extracts X X X X
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