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TMI Blog2021 (8) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... 010- 11, out of which ITA Nos 602-603/SRT/2018 relates to quantum assessments and ITA No(s).662-663/SRT/2018 relates to deleting the penalty under section 271(1)(c) of the Income-tax Act, 1961 (for short 'the Act'). Facts in first two appeals are similar, except variation of deduction under section 10AA, the Revenue has raised certain common grounds of appeal, therefore, with the consent of the parties are clubbed together, heard and are decided by a consolidated order for appreciation of fact. The facts of appeal for A.Y 2009- 10 was treated as lead case. The Revenue has raised the following grounds of appeal:- "1. On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in allowing the claim of assessee on deducti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs' capital and remuneration is allowable to them. The assessing officer held that noncharging of interest and remuneration thereof has been done to enhance the profit of eligible exempt income. The assessing officer worked out the interest and remuneration of Rs. 2.97 Crore and thereby excluded it from the eligible amount of deduction under section 10AA and initiated penalty under section 271(1)(c). On appeal before learned CIT(A), the action of assessing officer was reverse. Thus, aggrieved by the order of Ld. CIT(A), the revenue has filed present appeal before this Tribunal. 3. We have heard the submissions of the learned Commissioner of Income tax-departmental representative (CIT-DR) for the revenue and the learned authorised represent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eld that non-charging of interest and remuneration thereof has been done to enhance the profit of eligible exempt income. The assessing officer worked out the interest and remuneration of Rs. 2.97 Crore and thereby restricted the claim of section 10AA. The Ld. CIT(A) deleted the disallowance by following the decision of Jurisdictional high Court in Alidhara Taxspin Engineers ( supra) and also held that in the partnership deed it is clearly mentioned that no interest on capital or remuneration is payable to the partners. 6. We find that the Hon'ble Gujarat High Court in Alidhara Taxspin Engineers (supra) held mere incorporation of interest on partners' capital account and remuneration does not signify that the same is mandatory in natur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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