Section 185 - Assessment when section 184 not complied with - Income-tax Act, 1961

1 [Assessment when section 184 not complied with. 185. Notwithstanding anything contained in any other provision of this Act, where a firm does not comply with the provisions of section 184 for any assessment year, the firm shall be so assessed that no deduction by way of any payment of interest, salary, bonus, commission or remuneration, by whatever name called, made by such firm to any partner of such firm shall be allowed in computing the income chargeable under the head "Profits and gains of business or profession" and such interest, salary, bonus, commission or remuneration shall not be chargeable to income-tax under clause ( v ) of section 28.] --------------------- Notes :- 1. Substituted by the Finance Act, 2003, w.e.f. 1-4-2004. Prior to its substitution, section 185 read as under: " 185 . Assessment when section 184 not complied with .— Where a firm does not comply with the provisions of section 184 for any assessment year, the firm shall be assessed for that assessment year in the same manner as an association of persons, and all the provisions of this Act shall apply accordingly."