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TMI Blog2012 (11) TMI 1106X X X X Extracts X X X X X X X X Extracts X X X X ..... For the Respondent : Shri M.H. Naik For the Petitioner : Shri J.R.P. Gupta ORDER PER ASHA VIJAYARAGHAVAN, J.M.: These appeals preferred by the revenue are directed against a common order of the CIT(A)-VI, Hyderabad dated 25/05/2012 for the assessment years 2008-09 & 2009-10. The assessee also filed cross objection against the said order of the CIT(A) for the said assessment years under con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tners stand on a footing different from the other expenses, that sec. 44AD mandates deduction of interest and remuneration within the prescribed limits and that merely because the book profit has been rejected and an estimated resorted to, the assessee could not be denied the benefit of deduction u/s 40(b). 4. After considering the submissions of the assessee, CIT(A) following case of M/s C. Eswa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have heard the arguments of both the parties and perused the record as well as gone through the orders of the authorities below. We find that the issue is covered by the decision jurisdictional coordinate bench in the case of M/s C. Easwar Reddy in ITA No. 668/Hyd/2009 and ITA No. 670/Hyd/09, wherein the coordinate bench held as follows:- "14. Now coming to the payment of interest and sala ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the provisions which would come into operation with effect from 01/04/2011, in our opinion, the payment of interest and salary to the partner shall be allowed subject to limitation specified in section 40(b) of the Act from estimated income." 11. Respectfully following the decision of coordinate bench in the case of Easwar Reddy (supra), we uphold the order of the CIT(A) in directing the As ..... X X X X Extracts X X X X X X X X Extracts X X X X
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