Case Law Details
Jayesh Tokershi Shah Vs DCIT (ITAT Mumbai)
In a recent ruling, the ITAT Mumbai held that the share of profit received from a partnership firm cannot be taxed in the hands of the partner due to non-payment of taxes by the firm. The ruling clarified the tax treatment of such income. The ITAT observed that the exemption under section 10(2A) of the Income Tax Act applies to the share of profit in the hands of the partner, irrespective of the firm’s tax compliance. The ITAT’s ruling provides clarity on the taxation of share of profit from a partnership firm, affirming that it remains exempt in the hands of the partner even if the firm has not paid taxes on the declared income.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
This appeal has been preferred by the assessee against order dated 09.02.2023 passed by the Ld. Commissioner of Income-tax (Appeals)-11, Pune [in short ‘the Ld. CIT(A)’] for assessment year 20 16-17, raising following grounds:
1. That in the facts and circumstances of the case and in law, the Ld. CIT(A) erred in upholding the addition made by the Ld. AO amounting toRs. 1,85,05,05 Rs. 6,16,83,505/- on account of alleged unexplained cash credit us. 68 of the Act.
Please become a Premium member. If you are already a Premium member, login here to access the full content.