2023 (12) TMI 55

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....11/2016 passed u/s 143(3) of the Act by the Income Tax Officer, Ward-5, Margao-Goa ['AO' in short]. 2. Pithily stated facts borne out of case records are; 2.1 The assessee is a partnership firm engaged in the business as real estate developers & civil contractors etc., had e-filed its return declaring total income of Rs.3,81,79,160/- after claiming a deduction of Rs.84,00,000/- u/s 40(b)(v) of the Act towards partners remuneration. 2.2 The assessee's version of computation of book profit was comprised of income from operation of Rs.3,00,000/- and balance of Rs.4,66,45,829/- represented by interest income earned/accrued, which was accepted by the Ld. AO by an order of assessment dt. 30/11/2016 framed u/s 143(3) of the Act. 2.3 Fi....

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....ssue is squarely covered by the judgement of Hon'ble Gujarat High Court in the case of 'CIT Vs J J Industries' reported in 358 ITR 531' wherein their Lordships have held that; 'The said chapter nowhere provides that method of accounting for the purpose of ascertaining net profit should be the only income from business alone and not from other sources. S. 29 provides how the income from profits and gains of business should be computed and this has to be done as provided u/s 30 to 43D. By virtue of s. 5 that total incomes of any previous years includes all income from whatever source derived. Thus for the purpose of s. 40(b)(v) read with the Explanation, there cannot be a separate method of accounting for ascertaining net profit and/....