ABC PARTNRSHIP FIRM WAS CONSTITUTED IN F.YR 2004-05. DEED WAS EXECUTED AND PROVISION FOR RENUMERATION TO 3 PARTNER'S WAS MADE AS TO Rs15000 P.M EACH PARTNER.CERTIFIED COPY OF DEED WAS SUBMITTED WITH THE ITR FILED FOR A.YR 2005-06. NEITER SALARY WAS PAID TO THE PARTNER DURING THE F.YR2004-05 AS FIRM WAS IN LOSS DUE TO NEW CONSTITUTION NOR CLAIMED AS DEDUCTION UNDER P&L A/C IRRESPECTIVE OF PROVISION IN DEED.ASSESSMENT WAS FRAMED ON RETURN INCOME BY THE DEPTT. U/S 143(1). FOR THE NEXT F.YR 2005-06 SALARY WAS PAID TO THE PARTNER AND ALSO CLAIMED AS DEDUCTION UNDER P&L A/C, NO FRESH DEED WAS EXECUTED AS NO CHANGE IN CONSTITUTION/ SHARE ALLOCATION/ PARTNER'S SALARY.ASSESSMENT FOR THE F.YEAR 2005-06 WAS FRAMED U/S 143(3) SCRUTINY ASSESSMENT AND SALARY AS CLAIMED IN P&L A/C WAS ALLOWED AS DEDUCTION. NOW NOTICE HAS BEEN RECIEVED BY THE ASSESSEE FOR RACTIFICATION OF MISTAKE U/S 154/155,SALARY TO BE DISALLOWED FOR WANT OF FRESH DEED.FROM MY OPINION THERE WAS NO NEED TO EXECUTE THE FRESH DEED AS NO CHANGE IN CONSTITUTION/ SHARE RATIO/ PARTNER'S SALARY.
PARTNERSHIP FIRM-- SALARY DISALLOWANCE
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