2018 (5) TMI 1022

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....he case are that the Assessing Officer observed that the assessee was asked to furnish all purchase and sales bills of the current year and of the preceding previous year. The assessee was also asked to submit the purchase and sales registers. The assessee submitted that the purchase and sales bills for the financial year 2010- 2011 has been kept by the assessee and not traceable at present and as such the assessee produced stock register to justify the closing stock of the financial year 2010-2011. The Assessing Officer observed that from SI.No. 9(b) and (9(c) of Form No.3CD of the audit report for the year shows that the assessee maintains Ledger, Purchase Register, Sales Register, Cash Book through computerized system and the auditor has....

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.... section 184(5) of the I.T.Act, 1961. 4. On appeal, the CIT(A) held that as per provisions of section 184(5) of the Act, when the assessment is completed u/s.144 of the I.T.Act, 1961, salary and interest paid to the partners is not allowed as expenditure. He, therefore, confirmed the action of the Assessing Officer. 5. Being aggrieved, the assessee is in appeal before us. 6. Ld A.R. of the assessee before us relied on the decision of this Bench of the Tribunal in the case of M/s. Agarwal Transport Corporation vs ITO, Ward 2(1), Cuttack in ITA No.542/CTK/2013 order dated 8.7.2015, where, the Tribunal held that since the assessee in the present case has not produced the books of account and evidences in support of the expenses claime....

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....nd that since the income of the assessee was assessed under the provisions of section 144 of the Act, no deduction of salary and interest to partners was allowable. This was confirmed in appeal by the CIT(A). 9. The contention of ld A.R. is that in the similar facts and circumstances of the case in the case of M/s. Agarwal Transport Corporation(supra) this Bench of the Tribunal has allowed deduction for salary and interest paid to partners from the income estimated after rejecting the book results of the assessee and, therefore, following the same, salary and interest paid to the partners should be allowed as deduction to the assessee. 10. We find that Section 184(5) of the Act states that Notwithstanding anything contained in any oth....