2023 (1) TMI 649

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ions raised hereunder. 2. The Hon'ble CIT (Appeals) has erred in Law by upholding the order of the CPC bringing into taxation of the Partnership Income to the extent of Rs 39,25,098/- which is exempt under section 10(2A) of the Income Tax Act 1961. 3. The Hon'ble CIT (Appeals) has erred in Law, by upholding the disallowances of losses, carry forwarded from previous years amounting to Rs.12,90,274/- 4. The Hon'ble CIT (Appeals) has erred in Law, by upholding the Charge of Interest U/s 234 A, 234B and 234C of the Income Tax Act 1961 5. For the Grounds set forth herein above and such other grounds and arguments that may be urged during course of the Appellate proceedings, this Honorable Court may be pleased to set aside....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... is a partner, must have set off the brought forward losses and arrived at the actual profit during the year and then partners should have shared the profits after making due taxes. In this case, actual profit of the firm is NILL and thus nothing to share among the partners. The assessee's claim u/s 10(2A) cannot be allowed in absence of any profit in the partnership firm. Appeal is dismissed." 5. Aggrieved from the order the CIT(A), the assessee filed appeal before us. 6. The ld.AR submitted that during the impugned assessment year, the partnership firm earned income of Rs.78,50,201/-, which was taxed in the hands of partnership firm, which is evident from the computation of income placed at appeal set page No. 36 to 50, and referre....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....tner in Akarsh Property of 50% in the profit/loss and during the impugned assessment year, the assessee has received a share of profits from the partnership firm of Rs.39,25,098/-, which is included in his financial statements. On going through the computation of income filed by the assessee placed at paper book page No. 51 to 55, the assessee has included it in his net profit while arriving the profit of the business and the same has been reduced from the business profit because it is exempt income. 9. Further, on going through the financial statements of the partnership firm, the firm has earned income during the impugned assessment year, which has been divided by both the partners. In the computation of income of the partnership firm, t....