Partnership cannot be treated as AOP merely for execution of deed on inadequate stamp paper

Kachhi Heritage Vs ACIT (ITAT Pune)

Grounds of Appeal

1. On the facts and in the circumstances of the case and in law the Learned Assessing Officer erred in treating the status of the partnership firm as AOP for the reason that partnership deed is executed on an inadequate stamp paper. Your appellant submits that such condition is no where spelt out in provisions of section 184 or 185 of the Income Tax Act, 1961 and therefore the stand taken by the Learned Assessing Officer is incorrect.

2. On the facts and in the circumstances of the case and in law the Learned Assessing Officer erred in consequently disallowing entire partner’s salary for the reason that it is treated as AOP and assessed as AOP.

Held by ITAT

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