Case Law Details
Brief of the case:
ITAT Delhi in DCIT Vs Deepsons Southend held that if the assessee had filed an application u/r 46A with the request to admit the additional evidences annexed with the supporting documents like of balance sheet, IT returns etc. and moreover all the conditions of rule 46A were fulfilled and were necessary to go to the root of the matter while deciding the issues to which they relate.
If further held that if there is change in the profit sharing ratio of the partnership and all the partners remain same in the new partnership deed then that would not be change in the constitution of the firm so the loss of the firm could be carried forward.
If further held that the expense can be booked in the year in which the quantum of liability has been fixed irrespective of the year of rendering of services because until the liability has been fixed the same could not be booked in the books of account.
If further held that any penalty in the form of compensatory penalty should be allowed because the same was not for breaking the law.
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