Share of Partnership Profit Not Taxable for Firm’s Non-Payment of taxes

Jayesh Tokershi Shah Vs DCIT (ITAT Mumbai)

In a recent ruling, the ITAT Mumbai held that the share of profit received from a partnership firm cannot be taxed in the hands of the partner due to non-payment of taxes by the firm. The ruling clarified the tax treatment of such income. The ITAT observed that the exemption under section 10(2A) of the Income Tax Act applies to the share of profit in the hands of the partner, irrespective of the firm’s tax compliance. The ITAT’s ruling provides clarity on the taxation

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