2018 (5) TMI 1383

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....and trading of jewellery etc. There were survey operations conducted on 02-02-2006 and scrutiny assessment U/s. 143(3) of the Act was computed on a total income of Rs. 37,96,220/-. In that assessment, AO has allowed remuneration of Rs. 13,00,290/- to the three members of the HUF for their services. On the reason that remuneration to co-parceners is not allowable U/s. 184 or U/s. 40(b) of the Act, proceedings were reopened U/s. 147 by issuance of notice U/s. 148 on 13-03-2013. In the re-assessment proceedings, inspite of objections from assessee, the remuneration paid to the three members were disallowed. 3. Before the Ld.CIT(A), it was the contention that the remuneration was paid to three persons, who are members of the HUF for their se....

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....f proceedings U/s. 147 is not valid. The appellant's AR further place reliance on the decision of the Hon'ble Supreme in the case of CIT Vs. Kelvinator of India Limited (320 ITR 561). The contention of the appellant's holds water. It is also to note that the appellant's AR submitted that the Assessing Officer under the letter dated 21.05.2013 communicated the reasons stating that the approval from the JCIT was obtained, whereas approval of the Commissioner of Income-Tax was required. A plain reading of section 151 is reproduced as follows:- "For section 151 of the Income-tax Act, the following section shall be substituted with effect from the 1st day of June, 2015, namely:- "15.1. Sanction for issue of notice - (1) No ....