TaxTMI 
TaxTMI 
2000 (7) TMI 229
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....ed that he is not pressing the issue of additions out of depreciation on vehicle and marginal additions in the profit of contracting business. He, therefore, restricted his contention on the remaining issue relating to partners' salary and submitted that the payment of salary to partners is specifically provided in clause No. 7 of the deed of partnership of the assessee-firm. He, therefore, contended that salary to the extent provided and authorised by the partnership deed is an admissible expenditure as per s. 40(b) amended by the Finance Act, 1992, w.e.f. asst. yr. 1993-94. He also furnished a copy of relevant partnership deed in his paper book on page Nos. 5 to 9. He further submitted that this issue is also covered in favour of the asse....
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....unting to Rs. 36,000 from the assessed income of Rs. 55,974. While deciding this appeal, the learned Dy. CIT(A) entirely changed the basis of computation adopted by the AO and made certain adjustments which finally resulted-into an enhancement of total income by Rs. 3,49,595. The details of the adjustments made by the Dy. CIT(A) and resulted effects on the total income assessed by the AO are given below: ------------------------------------------------------------------ S. Adjustments made by Dy. CIT(A) Effect on income No. &n....
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....p; ------------ Effective net enhancement Rs. 3,49,595 ------------------------------------------------------------------ 8. Aggrieved by the said order of the Dy. CIT(A) the assessee is in appeal before us. 9. The learned counsel for the assessee submitted that the detailed written submissions was filed before the Dy. CIT(A) during the appeal proceedings by the assessee, but he failed to appreciate any aspect of the said written submission. He further submitted that the issues involved in this ground now stands cov....
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....e same was allowed by the AO in his original order in the case of Jain Construction Co. and, therefore, submitted that the said issue of interest to third parties was not there before the Hon'ble Jurisdictional High Court. He further stated that the Hon'ble jurisdictional High Court has only rejected the reference application by assessment judgment delivered on 15th March, 2000 considering that no question of law is involved and as such the said judgment cannot be considered as binding on the issue of interest to third parties. 12. We have heard both the parties and also perused the material on record to which our attention was drawn during the course of hearing. We have also gone through the judgment of Hon'ble jurisdictional High Court....
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....ing to this, the Hon'ble jurisdictional High Court has issued its judgment on 24th Sept., 1999. There was also a second round in which the assessee, aggrieved by the same order of the AO (which had been the subject-matter of revision application involved in the first round) preferred its first appeal to the Dy. CIT(A) who passed his order on 29th March, 1995, enhancing the income of the assessee. Subsequently, the said order of the Dy. CIT(A) was reversed by the Tribunal while disposing of the appeal filed by the assessee vide its order, dt. 14th Aug., 1998, in ITA No. 894/Jp/96. Against this order of the Tribunal, the Revenue again preferred an application under s. 256 which came before the Hon'ble jurisdictional High Court in the second r....
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....ttention specifically to its p. 6, wherein the Dy. CIT(A) has discussed the issue of payment of interest to third parties. The learned counsel of the assessee also referred to the RA preferred by the Revenue in second round before the Hon'ble jurisdictional High Court wherein there is a specific mention on page No. 3, para 1 about the issue of interest to third parties. The learned counsel of the assessee has, therefore, contended that the issue of interest to third parties was very much there involved in the proceedings. Although the contention of the learned Departmental Representative has been that there is no specific/express discussion/elaboration of the issue of interest to third parties in the judgment of the Hon'ble High Court issue....