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TMI Blog2018 (10) TMI 1686X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellant has not charged any interest and remuneration as per partnership deed therefore, the appellant firm cannot be compelled to charge interest or remuneration. Therefore, we are inclined to hold the CIT(A) was right in observing that the disallowance made by the AO on account of non provision of interest and remuneration of s. 10AA deduction is erroneous and incorrect and law and facts as in the peculiar facts of the present case the partnership deed clearly lays down that no interest and remuneration is payable and hence, the first appellate authority right in deleting the disallowance made by the AO on account of non provision of interest and remuneration from amount of deduction u/s. 10AA. We are unable to see any valid reason t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gher profits leading to higher claim of deduction u/s 10AA of the Act and thus, devoiding the revenue from due amount of tax? 3. On the facts and circumstances of the case, the Ld. CIT(A) ought to have upheld the order of the assessing officer. 4. It is, therefore, prayed that the order of the Ld. CIT(A) may be set aside and that of assessing officer may be restored to the above extent. 3. Grounds raised by the Revenue for A.Y. 2014-15 reads as follows: 1. Whether on the fact and circumstances of the case and in law, the Ld.CIT(A) was justified in deleting the disallowance made by the Assessing Officer by invoking provisions of Section 80(IA) r.w.s. 10AA(9) in giving deductions of in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt the Act ) in giving deductions of interest on Capital and Remuneration to partners of the assessee firm after finding that the assessee had taken undue benefits of Section 10AA by not claiming Interest on Capital and Remuneration to partners which resulted increase in exempted profit of the assessee. He further submitted that the Ld.CIT(A) was also not justified in not appreciating the fact that by not providing interest and remuneration to the partners, the firm has claimed higher profits leading to higher claim of deduction u/s 10AA of the Act and thus, depriving the revenue from due amount of tax. Finally, the ld. DR submitted that the AO made disallowance of benefit of s. 10AA of the Act to the assessee on reasonable and justified g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iginal partnership deed submitted during scrutiny proceedings. Subsequently, a supplementary/addenda to said partnership deed was made amending the said clause providing the clause of non-payment of interest on capital and remuneration to the partners, which was not submitted before AO during assessment proceedings but in the present case undisputedly in the partnership deed there is no clause providing payment of interest on capital and remuneration to the partners therefore, the ld. CIT(A) was right in denying application of order of ITAT, Rajkot in favour of the Revenue in the present case having distinct and dissimilar facts and circumstances. 7. Further, from the binding decision of the Hon'ble High court of Gujarat i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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