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TMI BlogPARTNERSHIP FIRM-- SALARY DISALLOWANCEX X X X Extracts X X X X X X X X Extracts X X X X ..... PARTNERSHIP FIRM-- SALARY DISALLOWANCE X X X X Extracts X X X X X X X X Extracts X X X X ..... 005-06. NEITER SALARY WAS PAID TO THE PARTNER DURING THE F.YR2004-05 AS FIRM WAS IN LOSS DUE TO NEW CONSTITUTION NOR CLAIMED AS DEDUCTION UNDER P&L A/C IRRESPECTIVE OF PROVISION IN DEED.ASSESSMENT WAS FRAMED ON RETURN INCOME BY THE DEPTT. U/S 143(1). FOR THE NEXT F.YR 2005-06 SALARY WAS PAID TO THE PARTNER AND ALSO CLAIMED AS DEDUCTION UNDER P&L A/C, NO FRESH DEED WAS EXECUTED AS NO CHANGE IN CONS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TITUTION/ SHARE ALLOCATION/ PARTNER'S SALARY.ASSESSMENT FOR THE F.YEAR 2005-06 WAS FRAMED U/S 143(3) SCRUTINY ASSESSMENT AND SALARY AS CLAIMED IN P&L A/C WAS ALLOWED AS DEDUCTION. NOW NOTICE HAS BEEN RECIEVED BY THE ASSESSEE FOR RACTIFICATION OF MISTAKE U/S 154/155,SALARY TO BE DISALLOWED FOR WANT OF FRESH DEED.FROM MY OPINION THERE WAS NO NEED TO EXECUTE THE FRESH DEED AS NO CHANGE IN CONSTITUTIO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... N/ SHARE RATIO/ PARTNER'S SALARY. Reply By DARSHAN JAIN: The Reply: The assessee is not required furnish instrument of partnership every year but should do so only in the first year. In your case as there is no change in the constitution of the firm or in the share of partners, the requirement of submission of revised deed u/s.184(3) is not applicable. The remuneration, if paid in accordance with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the original deed and within limits prescribed u/s.40(b), cannot be disallowed. Reply By manoj gupta: The Reply: There is no need to execute fresh deed every year. Thus the salary cannot be disallowed. Reply By DEV KUMAR KOTHARI: The Reply: Views of the queriest learned Mr. Puneet Virmani and learned Mr. DARSHAN JAIN also that of learned Mr. Manoj Gupta are correct. The partnership deed was file ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the first year and then there was no change requiring the firm to file another copy of partnership deed. As stated in query, in the second year deduction of salary was also allowed in regular assessment made u/s 143 (3). Therefore, the matter stand settled with a formed opinion of the AO.The AO cannot disallow salary of partners for alleged failure to a file a copy of partnership deed. Check ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... if the AO is contemplating some calculation mistake in the amount allowed.
Further more except calculation mistake this does not appear a matter rectifiable u/s 154/ 155. X X X X Extracts X X X X X X X X Extracts X X X X
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