Trinity Apos S Clearing And Shipping Agencies Chennai v. Ito Non Corporate Ward 12 3 Chennai

ITA 2121/CHNY/2017 | 2013-2014
Pronouncement Date: 05-12-2017 | Result: Partly Allowed

Appeal Details

Note: Please login to view full details
RSA Number 212121714 RSA 2017
Assessee PAN xxxxxxxxxxx
Bench xxxxxxxxxxx
Appeal Number xxxxxxxxxxx
Duration Of Justice 3 month(s) 4 day(s)
Appellant xxxxxxxxxxx
Respondent xxxxxxxxxxx
Appeal Type Income Tax Appeal
Pronouncement Date 05-12-2017
Appeal Filed By Assessee
Tags No record found
Order Result Partly Allowed
Bench Allotted C
Tribunal Order Date 05-12-2017
Last Hearing Date 16-11-2017
First Hearing Date 16-11-2017
Assessment Year 2013-2014
Appeal Filed On 31-08-2017
Judgment Text
Ita Nos 2121 2122 Mds 2017 5 Partnership Deed And Relates To Any Period Falling After The Date Of Such Partnership Deed In So Far As The Amount Of Such Pa Yment To All The Partners During The Previous Year Exceeds The Aggre Gate Amount Computed As Hereunder A On The First Rs 3 00 000 Of The Book Profit Or In Case Of A Loss Rs 1 50 000 Or At The Rate Of 90 Per Cent Of The Book Profit Whichever Is More B On The Balance Of The Book Profit At The Rate Of 60 Per Cent 5 From The Above Provision It Can Be Seen That Wh Ere An Assessee Is A Partnership Firm Any Payment Of Salary Bonus Com Mission Or Remuneration To Its Partners Under Certain Circumst Ances If It Exceeds The Limits Set Out In Clause B Deduction To The Ex Tent Of Excess Cannot Be Claimed In The Present Case Such Ceiling Is Presc Ribed In Two Slabs On The First Rs 30 Lakhs On The Book Profit Or In Cas E Of Loss Such Ceiling Is Rs 1 50 000 Or 90 Per Cent Of The Book Profit Wh Ich Ever Is More On The Balance Of The Book Profit Such Ceiling Prescri Bed Is At 60 Per Cent 6 The Question Therefore Arises Whether The Inte Rest Income Earned By The Assessee Firm From The Fixed Deposit Receipts S Hould Be Ignored For The Purpose Of Working Out The Book Profit To Ascer Tain The Ceiling Of The Partners Remuneration 7 The Tribunal Has Proceeded On The Basis That For The Purpose Of Ascertaining Such Ceiling On The Basis Of Book Prof It The Profit Shall Be In The Profit And Loss Account And Is Not To Be Classi Fied In The Different Heads Of Income Under Section 40 Of The Act The In Terest Income Therefore Cannot Be Excluded For The Purposes Of D Etermining The Allowable Deduction Of Remuneration Paid To The Par Tners Under Section 40 B Of The Act