Case Law Details
MART Vs ACIT (ITAT Delhi)
The issue in dispute before us in respect of remuneration given to the partners, which has been disallowed in terms of section 185 of the Act, which says that “if a firm does not comply with the provisions of section 184 of the Act for any assessment year, then no deduction by way of payment of interest, salary, bonus, commission or remuneration made by the firm to any partner of such firm shall be allowed”. The section 184 of the Act requires that a certified copy of the instrument of the partnership should be accompanied along with the return of income of the firm, whenever assessment of the firm is sought for first time.
Where assessee-firm had submitted only photo copy of the partnership deed which was without any certification, and further the deed was not witnessed by any person as required under section 184, therefore, the issue with respect to deductibility of partners remuneration was remanded back to AO with a direction to assessee to comply with the provisions of section 184(2).
FULL TEXT OF THE ITAT JUDGMENT
This appeal by the assessee is directed against order dated 31/03/2015 passed by the Ld. Commissioner of Income-tax (Appeals)-XX, New Delhi [in short ‘the Ld. CIT(A)’]for assessment year 2011-12 raising following grounds:
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