SMT. RUJUTA JANAK BHALARIA,MUMBAI vs. ITO WARD 11(3), MUMBAI

Shri Ankit Talsania appearing on behalf of the assessee submitted that the primary issue raised in this appeal by the assessee is against the addition of Rs. 16 lacs made on account of salary income from the partnership firm. Narrating the facts of the case, the learned AR submitted that the assesee is a working partner in partnership firm Unno Source Corporation. The assessee filed her return of income for

Per contra, Shri Sanjay J. Sethi representing the department vehemently defended the impugned order and prayed for dismissing the appeal of assessee. The learned DR submitted that the partnership deed provides for remuneration to the working partner at the rate of Rs. 24 lacs per annum. The assessee in her original return of income has disclosed remuneration of Rs. 18 lacs and there is no reason as to why the remuneration to working partner is reduced to Rs. 2 lacs. The assessee had paid self-assessment tax on remuneration of Rs. 18 lacs. The deduction in salary in revised return would amount to refund of self assessment tax.

We have heard the submissions made by rival sides and have considered the orders of authorities below. We have also considered the documents furnished by the assessee in the paper book. Undisputedly, the assessee filed her original return of income disclosing remuneration from partnership firm as Rs. 18 lacs. Thereafter, the assessee filed revised return disclosing remuneration from partnership firm at Rs. 2 lacs. The AO refused to accept the revised return of income as he was not convinced with the reason