2023 (8) TMI 1069

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....A RAO, A.M. : This assessee's appeal for assessment year 2010-11, arises against the CIT(A), Pune-11, Pune's Din and Order No. ITBA/APL/S/250/2023-24/1053002191(1), dated 19.05.2023, involving proceedings u/s. 143(3) r.w.s. 263 of the Income Tax Act, 1961 (in short "the Act"). 2. Briefly the facts of the case are as under : The assessee-appellant is a partnership firm duly constituted und....

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....vey as business income. Consequent to the order of the learned Pr. CIT-2, Nashik, the Assessing Officer completed the assessment vide order dated 29.02.2016 disallowing the excess remuneration of Rs. 1,69,777/- by treating the income declared during the course of survey proceedings as 'Income from other sources', rejecting the contention of the assessee-appellant that it is the business income of ....

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....rlier on two occasions. However, none appeared for the assessee despite service of notice of hearing. I, therefore, proceed to decide the appeal on merits, after hearing the Learned DR. 5. The issue in the present appeal relates to the quantum of deduction allowable u/sec. 40(b) in respect of the remuneration paid to the partners. There is no disparity between the return of income and assessed ....

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....edited to the P & L A/c, the presumption is that income is derived from business only and there is no evidence on record by the Assessing Officer to show that the assessee-appellant firm had derived this excess income under the head other than the business carried on by the assessee-appellant. Further once the income is credited to P & L A/c, it cannot be said that the source of the excess income ....