9911796707
TMI Blog2023 (1) TMI 649X X X X Extracts X X X X X X X X Extracts X X X X ..... real theory in the impugned assessment year, partnership firm has earned profit. We also gone through the previous year s financial statements i.e assessment year 2016-17 and 2017-18. In the assessment year 2016-17, the partnership firm has suffered a loss, which has been divided by both the partners equally and the loss has been included in the financial statements and while computing taxable income of the assessee, the same has been added back under the head other additions , which is evident from the computation of income filed by the assessee as directed by the bench. Assessee has not got any undue benefits. Assessee is eligible to claim exemption as per sec. 10(2A) of the Act on the profit received from the partnership firm. In vie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the levy of interest. 2. The brief facts of the case are that the assessee filed return of income on 29/10/2018 declaring a total income of Rs.34,02,778/- after claiming exemption from partnership firm u/s 10(2A) of Rs.39,25,098/-. The income from house property was shown at Rs.46,93,052/- and profit and gains from business or profession was claimed as loss of Rs.12,90,274/-. The return was processed u/s 143(1)(a) of the Act and exemption claimed u/s 10(2A) of the Act was denied to the assessee. Consequently, the loss claimed from business and profession was also denied to the assessee because it was set off due to disallowance of exemption claimed by the assessee. 3. Feeling aggrieved form the order of the CPC, the assessee filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of income. There was loss on the previous year, which has been set off for computing tax of the partnership firm and there was no profit after setting off of the losses. As per the accounting adopted by the assessee, there was profit of Rs.78,50,201/-, which has been divided equally by both the partners. On the previous assessment years, the losses has also been accounted by the assessee company, which has not been claimed as a loss while computing the income of the assessee. The assessee filed paper book containing pages 1 to 80, which is placed on record. The assessee has relied on the Judgment of Hon ble Karnataka High Court in the case of Vidya Investments and Trading Co. Pvt. Ltd., Vs. UIO Others reported in [2014] 367 ITR 33. 7. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome under the head business and profession , since the partnership firm was showing loss in the earlier years, which has been brought forwarded and while computing tax of the partnership firm, the same profit has been set off. As per the income-tax Act, there was no distributable profits but in real theory in the impugned assessment year, partnership firm has earned profit. We also gone through the previous year s financial statements i.e assessment year 2016-17 and 2017-18. In the assessment year 2016-17, the partnership firm has suffered a loss, which has been divided by both the partners equally and the loss has been included in the financial statements and while computing taxable income of the assessee, the same has been added back und ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
