SUNDER MEDICAL STORE,LAKHIMPUR KHERI vs. ITO-3(4), LAKHIMPUR

ITA 205/LKW/2026Status: DisposedITAT Lucknow13 August 2026AY 2018-195 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal condoned the delay in filing the appeal due to personal hardships faced by the partners. It held that the partner remuneration was a genuine business expenditure authorized by the partnership deed and should be allowed as a set-off.

What were the facts?

The assessee's income was assessed at a higher amount than reported due to an addition of partner remuneration. The assessee's appeal to the CIT(A) was dismissed, and the subsequent appeal to the ITAT was filed with a significant delay.

What were the issues?

Whether partner remuneration is an allowable business expenditure and whether the CIT(A) order was passed without proper opportunity to be heard.

Which sections of the Income-tax Act were involved?

Section 40(b),Section 154

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, LUCKNOW BENCH ‘SMC’, LUCKNOW

Before: SHRI KUL BHARAT

For Appellant: Ms. Gurneet Kaur, Advocate
For Respondent: Smt. Pratibha Singh, Addl.CIT(DR)
Hearing: 06.08.2026

PER KUL BHARAT : V.P. This appeal by the assessee is directed against the order of learned CIT(A)/ADDL/JCIT(A), Bangaluru, dated 27.02.2025 pertaining to the AY 2018-19. The assessee has raised the following grounds of appeal:

“1. Because on the facts and in the circumstances of the case the order of Ld. Commissioner of Income Tax (Appeals)-1, Bengaluru is bad in law and deserves to be quashed being illegal. Assessment Year:2018-19 2

2.

Because on the facts and circumstances of the case, the Ld. Commissioner of Income Tax (Appeals)-1, Bengaluru has erred in confirming the order passed under section 154 of the Income Tax Ac

The order continues below.

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