Issue before court:
The only issue before Hon’ble Court is that whether assessee can claim deduction on account to remuneration paid to partners when certified copy of instrument of change of partnership deed is not filed along with the return.
Brief Facts:
- Assessee filed return and claimed deduction on account of remuneration paid to partners but did not file certified copy of reconstituted partnership deed.
- Subsequently assessee filed copy of reconstituted deed before AO at the time of assessment proceedings.
- AO denied deduction and held that assessee was required to file copy of reconstituted deed at the time of filing return as per provision of section 184 (4). Assessee did not file amy such copy and claimed remuneration to partners.
- CIT (A) allowed appeal and held that Mere omission to file the deed with the return cannot and should not be treated as fatal.
- Tribunal relied upon judgment of Calcutta High Court in case of CIT vs. Magnum Export Pvt. Ltd. 262 ITR 10 in which Their Lordships held that the deduction under section 80HHC could not be disallowed simply because the audit report was not furnished along with the return.
- Tribunal also relied upon the findings Hon’ble Kerala High Court in the case of CIT-vs- G. Krishnan Nair [259 ITR 727] that filing of the audit report to claim deduction under section 80HHC (4A) of the Act is only directly in name and it can be filed at any time before the completion of the assessment.
Contention of Revenue:
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