Case Law Details
Jaideep Sharad Kotwal Vs ITO (ITAT Pune)
The issue in the present appeal relates to the eligibility of remuneration, share of profits received from partnership firm, whose profits are eligible for deduction u/s 80IB of the Act, admittedly, the assessee had received remuneration, share of profits received from partnership firm which derived his income from execution of eligible housing project u/s 80IB of the Act. The remuneration, share of profits received from the partnership firm does not take its colour from the income out of which is paid. The remuneration, share of profits received by the appellant from the partnership firm, inasmuch as, these two items of income, cannot be attributed to an activity of the assessee, whose profits qualifies for deduction u/s 80IB(10) of the Act. The remuneration, share of profits received from the partnership firm is derived by the appellant based on the contractual relationship between the appellant and the partnership firm. The Hon’ble Supreme Court in the case of Mrs. Bacha F. Guzdar vs. CIT, 27 ITR 1 (SC) held that a shareholder of company which carried on business of growing and manufacturing tea, the dividend income so received by assessee could not be treated as agricultural income. Same analogy can be drawn to the facts of the present case. Therefore, the contention of the appellant is totally devoid of any merit.
Further, it is significant to note that the appellant had not filed the return of income within the due date prescribed under the provisions of sub-section (1) of section 139 of the Act. The provisions of section 80IB clearly stipulates that in order to claim deduction u/s 80IB, the return of income should be filed within the due date prescribed under the provisions of sub-section (1) of section 139 of the Act. Therefore, we do not find any merit in the grounds of appeal filed by the appellant.
FULL TEXT OF THE ORDER OF ITAT PUNE
These are the appeals filed by the assessee directed against the different orders of ld. Commissioner of Income Tax (Appeals)-3/13, Pune [‘the CIT(A)’] dated 21.12.2017 for A.Y. 2011-12 and 05.03.2018 for A.Y. 2012-13 respectively.
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