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TMI Blog1994 (10) TMI 110X X X X Extracts X X X X X X X X Extracts X X X X ..... the Deputy Commissioner of Income-tax (Appeals), Rohtak. The dispute is relating to allocation of share amongst the partners of the firm. 2. The assessee had made a claim under section 32AB which was allowed by the Assessing Officer in computing income of the firm. This deduction, however, was added back for the purpose of apportionment of shares amongst the partners. Aggrieved by the action of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ins of business or profession subject to fulfilment of certain conditions. Since the assessee has fulfilled the conditions as provided under section 32AB deduction was allowed to the firm. A proviso has been inserted by the Finance Act of 1987 with effect from1-4-1987, which reads as under:--- "Provided that where such assessee is a firm or any association of persons or any body of individuals, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome-tax payable by the firm itself shall be determined; and (ii) the share of each partner in the income of the firm shall be included in his total income and assessed to tax accordingly." 6. In this case, the Assessing Officer after having computed the income of the firm has determined the income-tax payable by the firm itself. The next step as per section 182 is to include the share of each ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income of the firm is determined under section 143(3) or 144 the share has to be allocated amongst the partners under section 182, and thereafter, if deduction is claimed by the partner under section 32AB, such deduction is prohibited as the similar deduction has been allowed in the case of the firm. The proviso inserted by the Finance Act of 1987, in our view, is to prevent double deduction, onc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missioner (Appeals) was justified in reversing his order and directing to allocate the income of the firm amongst the partners without adding back deduction allowed to the firm under section 32AB. We, accordingly, uphold his decision. 7. We may point out that In the case of Life International, the Tribunal in [IT Appeal Nos. 1318 and 1319 (Delhi) of 1990] for assessment years 1986-87 and 1987-88 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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