https://www.taxtmi.com/caselaws?id=61310 The Appellate Tribunal ITAT Chandigarh allowed the appeal in favor of the assessee firm for the assessment year 1980-81. The Tribunal held that the addition of Rs. 10,000 to the firm's income due to low withdrawals by partners was not justified as the firm and partners are distinct entities under the Income Tax Act. Emphasizing that income must be taxable under the Act to be subjected to tax, the Tribunal ruled that the ITO cannot impose tax on income not taxable under the Act based on a concessional agreement. The addition was deleted, and the appeal was allowed. en-us Thu, 14 Jun 1984 00:00:00 +0530 Wed, 12 Jan 2011 11:44:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=61310 The Appellate Tribunal ITAT Chandigarh allowed the appeal in favor of the assessee firm for the assessment year 1980-81. The Tribunal held that the addition of Rs. 10,000 to the firm's income due to low withdrawals by partners was not justified as the firm and partners are distinct entities under the Income Tax Act. Emphasizing that income must be taxable under the Act to be subjected to tax, the Tribunal ruled that the ITO cannot impose tax on income not taxable under the Act based on a concessional agreement. The addition was deleted, and the appeal was allowed. Case-Laws Income Tax Thu, 14 Jun 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=61310