2018 (10) TMI 1686

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....ounds raised by the Revenue for A.Y. 2013-14 reads as follows: "1. Whether on the fact and circumstances of the case and in law, the Ld.CIT(A) was justified in deleting the disallowance made by the Assessing Officer by invoking provisions of Section 80(IA) r.w.s. 10AA(9) in giving deductions of interest on Capital and Remuneration to partners of the assessee firm after finding that the assessee had taken undue benefits of Section 10AA by not claiming Interest on Capital and Remuneration to partners which resulted increase in exempted profit of the assessee? 2. Whether on the fact and circumstance of the case and in law, the Ld.CIT(A) was justified in not appreciating the fact that by not providing interest and remuneration....

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....r. 4. It is, therefore, prayed that the order of the Ld. CIT(A) may be set aside and that of assessing officer may be restored to the above extent." 4. Both the parties have agreed to that the facts and circumstances of both the present appeals are identical and similar. For the sake of brevity and convenience, we are taking up ITA No.192/SRT/2017 as lead case. We have heard the arguments of both sides and carefully perused the relevant material placed on the record of the Tribunal. The ld. Departmental Representative (DR) submitted that the Ld.CIT(A) was not justified in deleting the disallowance made by the Assessing Officer by invoking provisions of Section 80(IA) r.w.s. 10AA(9) of the Income Tax Act, 1961 (for short 'the Act....

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....2.05.2017 and orders of ITAT, Ahmedabad in the case of M/s. Sagar Foods and Shreeji Dehydrate Export, 2017 (3) TMI 1297 and in the case of M/s. AI Reza Food Vs. ITO reported in (3) TMI 1237 (Ahd. - Trib.). 6. On careful consideration of above rival submissions, from the relevant operative part of first appellate order, especially paras 6.1.3 & 6.1.4, we observe that the AO has relied on the order of ITAT, Rajkot Bench in the case of Meridian Impex 37 taxmann.com 22 (2013) but the facts of that case are different from the facts and circumstances of the present case as in that case there was a specific loss in the partnership deed regarding payment of interest on capital and partner's remuneration in the original partnership deed submitted....