Partner of Firm Allowed Deduction under Income-tax Act

The High Court dismissed the income-tax case, confirming that the partner of a firm met the conditions for the deduction claimed under section 35CCA of the Income-tax Act, 1961. The Tribunal's decision was upheld, ruling that no referable question of law existed regarding the entitlement to deduction.

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The Revenue applied under section 256(2) of the Income-tax Act, 1961 regarding deduction claimed by an assessee partner in two firms. The Income-tax Officer upheld the claim, but the Commissioner of Income-tax directed deletion of deductions under section 263. The Income-tax Appellate Tribunal reversed the Commissioner's order. The Revenue sought reference to the High Court, questioning the entitlement to deduction under section 35CCA. The Tribunal held no referable question of law exists, as the partner of a firm fulfills the conditions for the deduction. The High Court dismissed the income-tax case.

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