TaxTMI 
TaxTMI 
2015 (5) TMI 549
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.... partnership deed along with the return was not fatal and therefore, did not attract the consequences laid down in Section 185 of the Income Tax Act. Aggrieved by the order of the learned Tribunal, the revenue has come up in appeal. The following question of law was framed at the time of admission of the appeal : "Whether on the facts and in the circumstances of the case, the learned Tribunal was justified in overlooking the factum of non-filing of reconstituted partnership deed along with the returns as required under section 184(4) of the Income Tax Act, 1961 ?". The question may be reframed as follows : Whether the Income Tax Appellate Tribunal was justified in upholding the deletion of the disallowance amounting to a sum ....
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....ch firm to any partner of such firm shall be allowed in computing the income chargeable under the head "profit and gains of business or profession". There is no dispute to the fact that the assessee filed the certified copy of the deed during the course of assessment proceedings. The question arises as to whether non filing of the copy of the changes in partnership deed along with the return is a violation of substantive provision and make the return invalid or it is only a procedural default and is an irregularity in filing the return. We are of the considered view that non-filing of the copy of the changes in partnership deed along with the return is only an omission and does not make the return filed by the assessee as invalid so as to d....
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....ascertain the share of each of the partner as to whether the remuneration being paid is in accordance with the deed of partnership deed and is also in accordance with the limit prescribed under section 40 (b) of the Act. The defect in not filing the copy of the change in instrument of partnership deed along with the return is a curable defect only through section 184(4) provides that the same should be furnished along with the return of income. In this regard, we find support from the decision of the Hon'ble Calcutta High Court in the case of CIT-vs- Magnum Export (Pvt.) Ltd. [262 ITR 10]. In the above case, it has been held by Their Lordships that sub-section (4) of Section 80HHC consists of two parts. The first part requires filing of....
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.... audit report to claim deduction under section 80HHC (4A) of the Act is only directly in name and it can be filed at any time before the completion of the assessment. We are also of the considered view that the filing of the revised/changed instrument of partnership deed along with the return is directory in nature and it can be filed at any time before completion of the assessment by the A.O. We do not agree with the Ld. D.R. that after the amendment by the Finance Act, 2003, non filing of instrument of partnership deed along with the return will make the claim of the assessee illegal so as to deny the claim of the assessee though the requisite details and the evidence is made available to the A.O. before he completes the assessment. Th....
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....efore, we do not find any reason to interfere with the finding of the Ld. CIT(A) to hold that the non-filing of the instrument of change in the partnership deed along with the return filed by the assessee but filed during the course of assessment proceedings will disentitle the assessee to claim the remuneration paid to the partners, which is paid in accordance with the provisions of the deed of partnership and the provisions of the Act. In view of the above, we hold that the Ld.CIT(A) has rightly deleted the disallowance of Rs. 4,49,60,000/- made by the A.O. Hence, we reject the Ground No.1 of the appeal taken by the Department." It is this order which is under challenge. Mrs.Das De, learned advocate appearing for the appellant re....
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....ent reads as follows : "It can well be said that section 22(3) is merely a proviso to section 22(1). Thus, a return submitted at any time before assessment is made is a valid return. In considering whether a return made is within time sub-section (1) of section 22 must be read along with sub-section (3) of that section. A return whether it is a return of income, profits or gains or of loss must be considered as having been made within the time prescribed if it is made within the time specified in section 22(3). In other words if section 22(3) is complied with section 22(1) must also be held to have been complied with. If compliance has been made with the latter provision the requirements of section 22(2A) would stand satisfied." Mrs.D....