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TMI Blog2015 (8) TMI 1536X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessment order, it is observed by the AO that no bills/vouchers and books of account or any other supporting vouchers have been produced before him and therefore, he had no option but to estimate the income to the best of his judgment. He has invoked the provision of Section 144 of the Act although not specifically stated in the assessment order. As per sub section (5) of section 184, where there is on the part of firm any such failure as mentioned in section 144, the firm shall be assessed without allowing deduction of any payment of interest and salary etc. to any partner of the firm in computing the income chargeable under the head business income. Hence, in the facts of the present case, Section 184(5) of the Act is applicable and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... That the Id. CIT (A) has erred in law and fact: a) in disallowing interest and salaries paid to partners without issue of notice to the appellant, as required u/s 251(2) b) in holding that no deed of partnership was filed that there has been no evidence about material supplied by the contractee at ₹ 14,86,146/- c) in ignoring the papers with submission note filed before him on 20-06-2014 2. That asstt. order has been passed u/s 143(3) in the status of R.F. deduction of salaries interest to partners from income is a necessary corollary unless denied by A.O in his order itself like A.Y 2012-13 u/s 143(3)/154 by the same I.T.O. 3. That the new partners introduced are all qualified and experienced perso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refore, it is no enhancement by Ld. CIT(A) on this aspect had been claimed by the assessee in ground no.1 (a) raised before the Tribunal. 5. We have considered the rival submissions. Regarding Ground no.1 of the assessee, we find force in the submission of Ld. DR of the Revenue that in the present case, there is no enhancement by Ld. CIT(A) in respect of disallowance of interest and salaries paid to partners because the same was not allowed by the AO also and therefore, there was no requirement to issue notice u/s 251(2) of the Act by Ld. CIT(A). Therefore, Ground No.1 (a) of the assessee is without any merit. 6. Regarding the merit of the allowability of deduction in respect of interest and salary paid by the assessee firm to its par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect of their PAN/bank account number, mobile number or postal address but there is no mention in the assessment order that when the AO required the assessee to furnish these information and the assessee failed to furnish the same. In the paper book, in respect of four partners out of six new partners, copy of acknowledgement/intimation u/s 143 (1) along with PAN is available on pages 10 to 13 of the paper book. The address and PAN of these four partners are available in the said acknowledgment/intimation. 8. Ld. CIT(A) also confirmed these additions on this basis that during the assessment proceedings or appellate proceedings, the assessee did not furnish their addresses PAN or their confirmation. In view of these facts that acknowledgem ..... X X X X Extracts X X X X X X X X Extracts X X X X
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