2025 (12) TMI 16

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....ri Arvind Kumbhare, Sr. DR ORDER PER SMT. ANNAPURNA GUPTA, AM: The present appeal has been filed by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals), (hereinafter referred to as "CIT(A)"), National Faceless Appeal Centre (hereinafter referred to as "NFAC"), Delhi dated 13.08.2024 passed under Section 250 of the Income Tax Act, 1961 (hereinafter referred to as....

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.... of payment of remuneration to its partners as agreed to in the original partnership deed. While the original terms agreed to, required remuneration to be paid to the extent allowable u/s. 40(b) of the Act @ 25% each to all the four partners of the assessee firm, however, during the impugned year, the assessee was noted to have paid remuneration only to two partners, with one of the partner gettin....

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....ng to the practice of changing the amount of remuneration paid to all the four partners who allegedly were all related so as to minimize the amount of tax paid in all by them. That the change in remuneration and interest paid to partners year-to-year was a tax planning scheme of the assessee in the impugned year, since it was found to be not supported by a genuine supplementary deed. The AO accord....

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....emuneration of Rs. 80 lacs merely because the supplementary deed supporting the revised remuneration terms was not notarized. • Even otherwise, even if the supplementary deed is rejected as in-genuine, then remuneration is to be distributed as per the original partnership deed and the said deed states that the remuneration is to be paid to the partners to the extent allowable u/s. 40(....