Loading ITAT cases…
3 orders · Page 1 of 1
The Tribunal held that Section 184(5) disallowance cannot be invoked in every case of assessment under Section 144. It can only be invoked due to specific lapses mentioned in Section 144, which were not sufficiently established in this case. Therefore, the disallowance of remuneration to partners was not justified.
The Tribunal held that Section 68 of the Income Tax Act cannot be invoked solely based on bank account entries when the assessee has provided evidence like purchase confirmations for the deposits. It was further held that only the profit element, not the entire sale proceeds, should be taxed if the transactions were not properly documented.
The Tribunal held that since the interest income was already offered for taxation in the hands of the partnership firm and the practice of showing income in the firm's name was consistent and accepted by revenue, taxing it again in the hands of the individual partner would amount to double taxation. Therefore, the addition was deleted.