M/S. ALLIED WATERPROOFING CO. ,KOLKATA vs. ITO, WARD - 34(2), KOLKATA , KOLKATA

This Assessee’s appeal for assessment year 2014-15 arises against the CIT(A), 10, Kolkata’s order dated 15-03-2018 passed in case no. 281/CIT(A)-10/W 34(2)/14- 15/2016-17/Kol. involving proceedings u/s 143(3) of the I.T Act, 1961 (in short ‘Act’) . Heard both the parties. Case file perused.

The Assessee’s first and foremost substantive ground challenges the correctness of both the lower authorities’ action disallowing its partner’s remuneration U/s. 40(b) amounting to Rs.2,00,000/- in the course of assessment as upheld in the lower appellate proceedings.

Both parties reiterated their respective stands against and in support of the impugned addition. I notice in this backdrop of fact assessee’s partnership deed forming part of record at pages 21-24 of the P/B suggests that its partner’s remuneration has been fixed to be not exceeding Rs. 1,00,000/- each to both the partners. This clinching fact has not been rebutted during the course of hearing. I therefore delete this former addition of Rs. 2 lakhs made by the lower authorities u/s. 40(b) of the Act.

Next comes assessee’s latter plea in the nature of additional substantive ground that it is only the N.P of Rs.66,155/- i. e liable to be added rather than entire sum of Rs. 8,26,936/- made in the lower appellate proceedings. I make it clear that there is no issue between the parties about the correctness of both the lower authorities’ action adding N.P @ 12% coming to Rs.8,26,936/-. I conclude in this fact that assessee already declared N.P rate @ 8% deserves to be adjusted leaving behind only difference to be Rs.66,155/-. I accordingly restrict the impugned addition to the extent of Rs.66,155/- The assesse gets part relief in this ground.

This Assessee’s appeal is partly allowed in above terms. Order pronounced in the Court on 10 -05-2019 Sd/- [ S.S.Godara ] Judicial Member Dated : 10 -05-2019 **PRADIP, Sr. PS Copy of the order forwarded to: