2022 (8) TMI 195

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....,00,000/-. 2. Interest on Capital from firm M/s. P.N. Gadgil Jewellers Rs. 1,77,88,061/-. 3. Disallowance of donation of Rs. 1,00,000/-." 3. Briefly, the facts of the care are as under: The appellant is an individual deriving income from share of the partnership firm, namely, M/s. P.N. Gadgil Jewellers. The return of income for the assessment year 2015-16 was filed on 31.08.2015 declaring total income of Rs. 4,40,47,940/-. The same was revised on 30.03.2016 at total income of Rs. 2,52,63,690/-. Against the said return of income, the assessment was completed by the Assistant Commissioner of Income Tax, Circle-4, Pune ('the Assessing Officer') vide order dated 21.12.2017 passed u/s. 143(3) of the Income Tax Act....

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.... material on record. The issue in the present appeal relates to the taxability of the remuneration received from the partnership firm and interest on capital contribution made by the partner of the firm in the absence of any business income in the hands of the firm. Admittedly, in the present case, in the books of partnership firm, the account of appellant credited with remuneration and interest on capital contribution, even though, there is no business profits in the hands of the partnership firm. The claim of the appellant is that in the absence of any business income in the hands of the firm, the question of payment of remuneration as well as interest on capital contribution does not arise and, therefore, the same cannot be taxed in the ....