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TMI Blog2005 (4) TMI 543X X X X Extracts X X X X X X X X Extracts X X X X ..... es out of the assessment completed under section 143(3) of the Income-tax Act, 1961. The assessee in this case, a partnership is carrying on the business of trading in electrical switches, water motors, etc. In the original return filed by the assessee-firm, there was a mistake of Rs. 61,568 relating to incentives and discounts. In the course of assessment proceedings, the assesseefirm rectified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Commissioner of Income-tax (Appeals) held that the remuneration that could be claimed by a partnership firm in computing its taxable income is the remuneration debited in its books of account and nothing more. Therefore, he also confirmed the order of the assessing authority refraining to revise the remuneration attributable to the partners under section 40(b). It is against the above that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urned by the assessee-firm or the assessment has been completed on higher amount of income on the basis of the revised return of income, the assessee-firm is entitled for claiming the proportionate higher amount of remuneration payable to the partners. This is a natural consequence of assessing higher amount of income. The differential higher amount of remuneration to the partners in comparison wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ility that the amount of remuneration debited in the books of account of the assessee-firm was less than the amount attributable to the partners as remuneration on the basis of the revised return of income filed. The disparity in the remuneration attributable to partners as per the entries in the books of account and as per the assessed income is not because of the fault of the assessee-firm ; it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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