2021 (7) TMI 280

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....r on the fact and circumstance 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)(10) 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 ton Capital and Remuneration to partners which resulted increase in exempted profit of the assessee? 2. Whether on the facts and circumstances of the case and in law, the CIT(A) is justified in not appreciating the fact that by not providing interest and remuneration to the partners, the firm has claimed higher profits leading to higher claim of deduct....

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....) on account of not claiming interest and remuneration on partners capital, was made by assessing officer in the assessment for A.Y. 2012-13, however, on appeal the disallowances were deleted by Ld. CIT(A) by following the order of jurisdictional high Court in Alidhara Taxpro Engineering (P) Ltd Vs DCIT [2010] 189 Taxman 164 and decision of Tribunal in ACIT Vs Mukta Enterprises [2018] 100 taxmann.com 33 (Surat-Tribunal). The relevant part of the decision of Tribunal in A.Y. 2012- 13 is extracted below; "5. We have heard the rival submissions and perused the relevant material on record. We find that the AO has relied on the order of Rajkot Bench in the case of Meridian Impex 37 taxmann.com 22 (2013) but the facts of that case are different....