THE DCIT, CIRCLE-1(3), SURAT vs. M/S. SHREE VIJYA LAXMI EXPORTS, SURAT

Per contra, the ld.Counsel for the assessee submitted that the 19. issue is covered by the decision of Hon'ble Gujarat High Court in the case of PCIT Vs. Alidhara Taxspin Engineers, Tax Appeal No.265/2017 dated 02.05.2017 wherein the disallowance in respect of remuneration and interest to partners were deleted by the Tribunal were upheld by observing that the mere incorporation of interest of the partners capital and remuneration does not signify that same are mandatory in nature.

We have heard the rival submissions and we find that the 20. issue is squarely covered in favour of the assessee and against the Revenue by the decision of Hon'ble Jurisdictional High Court of Gujarat in the case of PCIT Vs. Alidhara Taxspin Engineers(supra),

Vijayalaxmi Exports /ITA No.2342/AHD/2014 & 815/Ahd/2016 : A.Y.2011-12 & 12-13 Page 11 of 11

dated 02.05.2017, accordingly this ground of appeal of the Revenue is dismissed.

In the result, both appeals filed by the Revenue are dismissed. 21.

The order pronounced in the open court on 24.07.2019. 22.

Sd/- Sd/- (BHAVNESH SAINI) (O.P.MEENA) (�याियकसद�यतथा/JUDICIAL MEMBER) (लेखासद�यकेसम� /ACCOUNTANT MEMBER) सुरत/ Surat, �दनांक Dated: 24th July, 2019/S.Gangadhara Rao, Sr.PS Copy of order sent to- Assessee/AO/Pr. CIT/ CIT (A)/ ITAT (DR)/Guard file of ITAT. By order / / TRUE COPY / / Assistant Registrar, Surat