2022 (9) TMI 580

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....w.s. 147 of the Income Tax Act, 1961 (hereinafter the 'Act') vide order dated 19.12.2017. 2. The only issue in this appeal of assessee is as regards to the order of CIT(A) confirming the action of the AO in restricting the remuneration to Rs.4.50 lakhs as against claimed by the assessee at Rs.6 lakhs, even though the remuneration was paid to the partner in view of the amended deed dated 12.01.2022 and as per the deed, remuneration are to be paid in term of section 40(b) of the Act. 3. We have heard rival contentions and gone through the facts and circumstances of the case. Brief facts are that the assessee firm is engaged in the business of wholesale trading in silver jewellery. The AO during the course of assessment proceedings noted....

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....ng reproduced for the sake of clarity as under:- "CLAUSE 5 OF RANJEET JEWELLERS PARTNERSHIP DEED That party of the FIRST, SECOND and THIRD PARTS have agreed to look after the partnership firm as working partner. It is agreed that in consideration of parties devoting their time and attention to the business of the Partnership Firm they shall be paid remuneration calculated in the manner set out below in the equal ratio. i] The aggregate remuneration payable to the working partner shall not exceed the amount calculated as under: [a] on the first Rs. 3,00,000/- of the Rs. 1,50,000/- or at book- profit or in case of loss 90% of the book profit, whichever is more [b] on the balance of the book-profit ....