TaxTMI 
TaxTMI 
2021 (10) TMI 866
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.... "i) On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in allowing deduction u/s 80IB of the Act amounting to Rs. 2,04,07,333/- by disallowing the partner's remuneration and interest on capital which is in contravention to the covenants laid down in the partnership deed. ii) On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in not appreciating the fact that the partnership deduction clearly states that the interest and remuneration were payable to the partners and the partners as per their entitlements. iii) On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in not appreciating the fact that Assessing Officer had rightly....
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....nd remuneration to the partners claimed deduction under section 80IB(10). Deduction under section 80IB of the Act is allowable after excluding the interest and remuneration to the partners as per the partnership deed. The Assessing Officer was of the view that assessee claimed excess deduction. The assessee was liable to pay interest capital with the partners of Rs. 13,03,691/- and remuneration to the partners of Rss.1,92,16,836/- thereby total of Rs. 2.05 crores. The Assessing Officer after providng reasons recorded to the assessee proceeded for assessment. The Assessing Officer recorded that the assessee objected the proceedings initiated under section 147 of the Act. The objection of assessee was disposed with the speaking order passed o....
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....sessing Officer and held that the change in the partnership deed vide supplementary dated 01.04.2008 is not acceptable as the supplementary partnership deed was not produced during the course of assessment proceedings. Accordingly, the Assessing Officer disallowed the part claim of their remuneration bill thereby restricted to Rs. 2,37,90,313/- by disallowing of Rs. 2,04,07,333/-. 3. Aggrieved by the disallowance of Assessing Officer assessee carried matter before Ld. CIT(A). The assessee filed its detailed written submission. The detailed written submission of the assessee are recorded in para-5 in the order of Ld. CIT(A). The Ld. CIT(A) after considering the original partnership deed re-constituted the partnership deed and the submissi....
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....ginal partnership deed, the partners have option to amend the clause of partnership with the consent of the parties. The Supplementary deed was executed with the consent of majority of the partners of the assessee-firm vide supplementary deed dated 01.04.2008. 6. The Ld. AR of the assessee further submits that though the case of assessee for assessment year 2010-11 (the year under dispute) was re-opened on 05.03.2015 by recording reasons that assessee has not allowed interest and remuneration to the partners. A notice under section 148 of the Act was issued on 11.03.2015. However, the same Assessing Officer for subsequent assessment year i.e. 2012-13 allowed similar relief to the assessee in assessment order dated 13.03.2015 passed under....
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....options. The partners decided not to give any remuneration. On the interest to partner's capital, the assessee stated that it is privilege of the partners to change or amend the clause as agreed under the deed of partnership.Clause- 21 of the partnership deed provides such amendment. The assessee stated that the partnership was revised on 01.04.2008 i.e. much prior to the selection of return for scrutiny. The Assessing Officer disregarded the contention of the assessee and disallowed the part remuneration under section 80IB of the Act to the extent of Rs. 2,73,90,313/- thereby disallowed Rs. 2,04,07,333/-. We find that Ld. CIT(A) allowed the relief to the assessee by following decision of Tribunal in the case of Alidhara Taxspin Engineers (....