9911796707
TMI Blog2021 (5) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... its relevant causes and no such disallowance [interest and remuneration] has been made. We have perused the contents of assessment order for A.Y. 2013-14 dated 11.03.2016 passed under section 143(3) by same Assessing Officer. We find that the observation of ld.CIT(A) that no disallowances in subsequent assessment year is made by AO, are correct. The Hon'ble Jurisdictional High Court in PCIT vs. AL Reza Food [ 2017 (3) TMI 1237 - ITAT AHMEDABAD] held that mere incorporation of interest on the partner s capital and remuneration does not signify that same are mandatory in nature. Considering the aforesaid factual and legal position, we affirm the order of ld.CIT(A). Appeal of the Revenue is dismissed. - I.T.A No.2153/AHD/2016 - - - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing Officer may be restored to the above extent. 2. Brief facts of the case are that the assessee is a partnership firm, engaged in development of housing project, filed its Return of Income for A.Y.2012-13 on 29.09.2012 declaring gross total income of ₹ 11.94 crore and claimed deduction under section 80IB(10) of the Act on entire amount thereby declaring Nil income. The case was selected for scrutiny. The assessment was completed under section 143(3) of the Act on 25.03.2015. The AO during the assessment noted that the assessee firm is engaged in the development of housing project know as Jolly Avenue and Jolly Residency eligible for deduction under section 80IB(10) of the Act. It was further noted that the assessee has sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; 3,49,32,928/- is allowed. 3. Subject to the above, a total income of the assessee is computed as under: Less: i. Interest to partners as computed above ₹ 3,15,82,314 ii. Allowable remuneration to the partners ₹ 5,23,24,391 ₹ 8,39,06,705 ₹ 3,55,33,849 Less: Eligible deduction U/s.80IB(10) ₹ 3,49,32,928 Total Income ₹ 6,00,921 i.e. ₹ 6,00,920 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of partnership deed dated 01.04.2006 [second partnership deed] and accepted the same and no disallowances on those issues i.e. interest and remuneration to partner was not made. On the basis of aforesaid observation and the ld.CIT(A) allowed the entire claim under section 80IB(10) of the Act. Aggrieved by the order of ld.CIT(A), the assessee has filed present appeal before us. 4. We have heard the submission of ld.CIT-DR for the Revenue and ld.Authorised Representative(AR) of the assessee. The ld.CIT-DR for the Revenue supported the order of AO. However, on confronting the fact that AO himself accepted the similar claim subsequent assessment year on the basis of second/supplementary partnership deed dated 01.04.2006. The ld.CIT-DR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of assessee under section 80IB(10) of the Act by disallowing remuneration and interest to the partner. Before restricting / disallowing claim the AO has not issued show cause notice to the assessee. Before the ld.CIT(A), the assessee explained that the AO has not considered the partnership deed dated 01.04.2006 wherein the partners are not eligible for interest and remuneration. The ld.CIT(A) after considering the contents of partnership deed dated 01.04.2006 held that the AO himself accepted the contents of second partnership dated 01.04.2006 and its relevant causes and no such disallowance [interest and remuneration] has been made. We have perused the contents of assessment order for A.Y. 2013-14 dated 11.03.2016 passed under section 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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