AI Drafter 
TaxTMI 
TaxTMI 
2015 (10) TMI 1884
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.... issued within the statutory time limit. In ground no. 2 and 3, the assessee has challenged reopening of the assessment by issuance of a notice under section 148 of the Income Tax Act. The ld. Counsel for the assessee did not press these grounds of appeal, hence, these are rejected. 3. The ground nos.4 and 5 are inter-connected to each other. In these grounds, the assessee has pleaded that the ld. CIT(A) has erred in confirming the disallowance of interest of Rs. 2,91,285/- and remuneration of Rs. 3,13,430/- paid to the partners. 4. Brief facts of the case are that the assessee has filed its return of income on 31.10.2005 declaring total income at Rs. 3,06,164/. The assessment order was passed under section 143(3) on 17.9.2007. The as....
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.... contended that the filing of partnership deed along with return of income is directory condition. If the assessee has filed it during the assessment proceedings, then it will be construed as sufficient compliance. He prayed that the interest and remuneration paid to the partners and disallowed by the AO be deleted. 7. On the other hand, the learned DR relied on the order of the AO. 8. On due consideration of the facts and circumstances, we find that the Hon'ble Calcutta High Court has held that the filing of the partnership deed along with return as contemplated in section 184 is a directory. If the assessee has filed the partnership deed during the assessment proceedings, then, it will be construed that the assessee has complied wit....
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....in the case of Billimora Engineering Mart v. CIT 153] observed as under Head Note : "In the Act of 1961, the requirement is that a partnership deed should be evidenced by an instrument and the application shall be accompanied by the original instrument evidencing the partnership at the date of the application. The words, "evidenced by an instrument of partnership" do not indicate necessarily that the evidence should be a contemporaneous evidence when the application is made, because, in the ultimate analysis, the purpose of any evidence, and for that matter the instrument of partnership, is to satisfy the authority that there was a genuine and valid partnership in existence in the accounting year. Procedural law is always to be con....
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....pinion that the view taken by the learned Tribunal is the correct view. We may add further reasons why the view taken by the learned Tribunal is unimpeachable. The assessee is required to file return under sub-section 1 of Section 139 within the time prescribed therein. What is the time prescribed has been dealt with in Explanation 2 appended to subsection 1 of section 139. This requirement of law has to be held subject to the provision of sub-section 4 which permits an assessee to file a return at any time before the expiry of one year from the end of relevant assessment year or even before the completion of the assessment whichever is earlier. 9. The Apex Court in the case of CIT v. Kulu Valley Transport Co. (P.) Ltd., [1970] 77 ITR 51....
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....s a submission which we are in a position to accept. 12. The records reveal that a prayer was made before the assessing officer on behalf of the assessee to treat the return as a defective return because the instrument of change in the partnership deed was not annexed to the return. In that case, the assessee would be entitled to an opportunity to cure the defect. The assessing officer refused to treat the return as a defective return. Once he refused to treat the return as a defective one he could not have also held that the return was in derogation of subITA section 4 of section 184 of the Act nor could he in that case have refused to allow the deductions. If, on the contrary, he had held that the return was defective, then under sub-s....