TaxTMI 
2026 (11) TMI 473
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....ty and therefore, the assessment is null and void. 3. That the learned Commissioner of Income Tax (Appeals) erred in law and on facts in not considering the Form 16 submitted by the appellant while determining income form salary. 4. That the learned Commissioner of Income Tax (Appeals) erred in law and on facts in not considering Rs. 3,20,000 as salary, even after appellant stating that salary of Rs. 10,26,000/- was shown inadvertently. 5. That the learned Commissioner of Income Tax (Appeals) erred in law and on facts in not considering salary income as per Form 26AS. 6. That the learned Commissioner of Income Tax (Appeals) erred in law and on facts in not providing the appellant with a sufficient opportunity of being heard, having issued only a single hearing notice. 7. That the learned Commissioner of Income Tax (Appeals) erred in law and on facts in not giving TDS credit as per Form 26AS though the corresponding income is disclosed. Each of the above grounds is without prejudice to one another, the appellant craves the leave of Hon'ble Income Tax Appellate Tribunal, Bangalore to add, delete, amend or otherwise modify all ....
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....een shown by the assessee in his return of income and hence the system has declared the return for the AY 2020-21 filed on 01.03.2021 as invalid. Thereafter, the case of the assessee was reopened u/s. 147 of the Act and accordingly notice u/s. 148 of the Act was issued on 28.03.2024. The assessee did not file any return of income in response to the notice u/s. 148 of the Act and hence the assessee had no valid return for the AY 2020-21. Accordingly, the AO had no other option except to complete the case u/s. 144 of the Act. 4.1 During the course of assessment proceeding, on perusal of the record available, the AO observed that the assessee had disclosed his salary income of Rs. 10,26,000/- in his return of income. However, during the assessment proceedings, the assessee by way of submitting the statement of total income on 22.11.2024 had claimed to have received salary of Rs. 3,20,000/- only. Further, the assessee submitted that the amount of Rs. 10,26,000/- was erroneously mentioned as the assessee was not sure on the breakup between salary from SRBC & Associate LLP and remuneration from Ernst & Young LLP which is taxable under the head PGBP. 4.2 The AO did not believe the c....
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....d. CIT(A)/NFAC however, directed the AO to grant credit of TDS amounting to Rs. 99,840/- as reflected in Form 26AS in accordance with law. 7. Again, aggrieved by the order of ld. CIT(A)/NFAC, the assessee has filed the present appeal before this Tribunal. The assessee has also filed a paper book comprising 284 pages containing therein written submissions along with various documents/records as well as case laws relied upon by the assessee. 8. Before us, the ld. A.R. of the assessee vehemently submitted that the assessee could not submit the bank statement before the lower authority in order to substantiate the claim of receipt of actual salary amounting to Rs. 3,20,000/-. Further, the ld. A.R. of the assessee submitted that Rs. 24,00,000/- was received as salary being a partner of the limited liability partnership and the assessee was under the presumption that the entire share of profit from Ernst & Young LLP is exempt u/s. 10(2A) of the Act. The ld. A.R. of the assessee also argued that an amount of Rs. 10,26,000/- was erroneously declared in the return of income as the assessee was not sure of the breakup of the salary from SRBC & Associate LLP and remuneration from Ernest....
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....ed by SRBC & Associates LLP (placed at page 29 to 36 of the paper book), we observed that the salary was given for the first 3 quarters only and there is no salary in the 4th quarter. The AO had not verified the reasons for non n of the salary in the 4th quarter. Further, we also failed to understand that why a renowned Chartered Accountants LLP will deduct TDS of Rs. 99,840/- on a total net salary of Rs. 2,70,000/-(salary of Rs. 3,20,000/- (-) standard deduction of Rs. 50,000/-) paid to an employee and this has created a confusion in the mind of the lower authorities. Before us, the assessee had produced the copy of the bank statements for the first time and therefore, the lower authorities had no occasion to examine the same. Further, we also agree with the view of the lower authorities that it is completely unbelievable that the assessee Chartered Accountant can file a return of income without being not sure of the breakup between salary from SRBC & Associates LLP and remuneration from Ernst & Young LLP and will declare the salary income of Rs. 10,26,000/- in his return of income. We are also quite surprised to note that while filing the return of income, the assessee Chartered ....
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.... head "salaries" but it is a business income u/s. 28(v) of the Act to the extent the firm can deduct it u/s. 40(b) of the Act. Thus, what is allowed as deduction in the hands of the partnership firm/LLP is taxable in the hand of the partner. Further, in our considered opinion, unlike section 28(i) of the Act, where it states that only profits & gains of the business or profession which was carried on by the assessee at any time during the previous year shall be chargeable to income tax under the head "profits & gains of business or profession", section 28(v) of the Act states salary or remuneration received by the partner of a firm from such firm shall be chargeable to income tax under the head PGBP. Thus, this charging section does not stipulates that the profits & gains from salary or remuneration received by the partner of the firm from such firm will only be taxable. Further, on perusal of the section 44ADA of the Act, we also take note of the fact that an individual who is a resident in India engaged in profession referred to in section 44AA(1) of the Act and whose gross receipt do not exceed Rs. 50 lakhs in a previous year, a sum equal to 50% of the total gross receipts of th....