Partners’ Remuneration Disallowance Set Aside Due to ITR Error

Advertisement Punyashila Automobiles Vs ITO-2 (ITAT Indore) Partners’ Remuneration Deduction Cannot Be Denied for ITR Reporting Error: ITAT Indore Remands for Verification The Indore Bench of the ITAT allowed the assessee-firm’s appeal for AY 2016-17 for statistical purposes, holding that a legitimate deduction of partners’ remuneration under section 40(b) cannot be denied merely due to an inadvertent reporting mistake in the return of income. In this case, the assessee had actually paid partners’ remuneration of ₹13.95 lakh, duly reflected in the audited Profit & Loss Account...