1984 (3) TMI 91

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....Mahesh Prasad and Shree Ganesh Prasad under section 40A(2)(a) of the Income-tax Act, 1961 ('the Act') on the ground that they were excessive and unreasonable. The following table shows the amounts claimed and allowed:         Mathura Prasad Dhoomimal                            Claimed                      Allowed                   1980-81         1....

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....work is purchase of goods                                                       from Mandi and factories, etc.,                                                       and dealing for out-station sale    ....

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..... Ganesh Prasad       Aged 35 years       M. Com.       His work is supply of goods to                                                       dealing parties from godown.                                      ....

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....of the ITO with these additional reasons. 4. We have considered the rival submissions. We find that originally under a partnership deed dated 12-9-1975 the firm consisted of six partners including the aforesaid three partners. For reasons disclosed in the assessee's reply dated 4-2-1980, namely, the promulgation of the U.P. Essential Articles and Things (Restriction on Grant and Supply to Unplanned Families) (Order 1976), these persons vide notices dated 1-9-1976 retired from the said partnership. Thereafter, a fresh partnership deed was executed on 4-10-1976 with effect from 1-10-1976 with only Durga Prasad and Jagdish Prasad as partners with 50 per cent share each. The aforesaid three persons also executed separate but similar agreemen....

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....sp;        250 per month Apart from the qualifications, etc., of these three persons mentioned above and which were taken into consideration by the ITO, the assessee had also mentioned in its reply dated 4-2-1980 that these persons had to perform some more duties like collection of money from parties and booking of orders for future supply of goods due to the reason that they were young as compared to the remaining two partners. We find that at the time when these three persons were partners in the assessee-firm they were having the same share as the surviving partners even though the surviving partners are old. Therefore, the fact that these three persons were not working full time but only part-time, ....