Case Law Details
ACIT Vs Dhar Construction Company (ITAT Guhati)
ITAT Gauhati held that TDS not required to be deduct by the partnership firm on salary, bonus, commission or remuneration given/ credited to the partner of the firm.
Facts- The case of the assessee was selected for scrutiny through CASS for high ratio of refund to TDS, large value claim of refund and large increase in capital in a year. AO assessed the income by making various disallowance like disallowance u/s 40(b)(v) and 40(a)(ia), disallowance of material consumed for construction, disallowance of labour charges/ salary/ store & spare/ direct expenses/ office expenses etc.
Aggrieved, the assessee preferred an appeal before the ld. CIT(A) and succeeded. Aggrieved, now the Revenue is in appeal before this Tribunal.
Conclusion- Held that since salary, bonus, remuneration or commission are collectively termed as “remuneration” and the remuneration paid during the year is within the permissible limit provided u/s.40(b)(v) of the Act, therefore, we fail to find any infirmity in the findings of the ld. CIT(A).
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