Failure to Apply Sections 28(v) and 40(b) Invalidates Assessment Order

Govind Kumar Vs ACIT (Karnataka High Court) Partner’s Remuneration Cannot Be Taxed Ignoring s.28(v) r/w s.40(b); Karnataka HC Sets Aside Assessment for Non-Consideration of Statutory Provisions The Karnataka High Court, in Govind Kumar vs. ACIT, Central Circle-1(1) & Anr. (W.P. No. 10759 of 2025, order dated 01-Dec-2025), set aside the assessment order u/s 143(3), consequential demand notice u/s 156, and penalty notice u/s 274 r/w s.270A for AY 2023-24, holding that the Assessing Officer failed to properly consider the statutory scheme of s.28(v) r/w s.40(b) while taxing partner’s remu...