9911796707
TMI Blog2013 (1) TMI 1021X X X X Extracts X X X X X X X X Extracts X X X X ..... see arises from the order of the CIT(A), Jalandhar, dated 29.03.2012 for the assessment year 2007-08. The assessee has raised following grounds of appeal: 1. That the ld. CIT(A), Jalandhar has erred in law in the circumstances of the appellant s case in confirming the asstt. year 2007-08. 2. That the appellant craves the right to alter/modify/add/delete any or above grounds before or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eping in view the business condition profitability. The AO was of the view that the aforesaid clause 6, when examined in light of the CBDT s Circular No.739 dated 25.3.1996 showed that the amount of remuneration had not been laid down. He asked the assessee to justify the claim. The assessee relied on several judgments including of Hon ble Jurisdictional Tribunal in the case of ITO vs. JMP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e partners whereas the partnership deed provided remuneration to all the partners. The Circular No.739 was not an issue in this judgment. Hence, the AO disallowed the remuneration to partners claimed by the assessee. 3. Before the Ld. CIT(A), the assessee submitted the explanation which is available in para 3 of the CIT(A) s order at page 3 4. The Ld. CIT(A) vide para 4 to 7 of his order rely ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ital accounts of the partners. 4.1. The Ld. counsel for the assessee further relied upon the decisions of various courts of law as under: 1. CIT vs. Anil Hardware Store 223 CTR (HP)595 2. Durga Dass Devki Nandan vs. ITO 241 CTR (HP) 180 3. Sood Bhandari Co. Ors. Vs. CBDT 246 CTR (P H) 89 4. CIT vs. The Asian Marketing 254 CTR (Raj) 453 5. The Ld. DR, on he other hand relie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the assessee has laid down the manner of quantifying such remuneration amounting to ₹ 2,04,000/- as per clause 6 of the partnership deed available at PB 6 to 11. The AO is accordingly directed to delete the addition so made. Thus, all the grounds of the assessee are allowed. 7. In the result, the appeal of the assessee in ITA No.261(Asr)/2012 is allowed. Order pronounced in the open ..... X X X X Extracts X X X X X X X X Extracts X X X X
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