MS SAI KRUPA ENTERPRISES, BHUBANESWAR V. INCOME TAX OFFICER, WARD-5(2), BHUBANESWAR

ITA 188/CTK/2024

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 6352 (ITAT-CUTTACK)
• Duration Of Justice: 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-06-2024
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Appeal Filed On: 23-04-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BEFORE MS Sai Krupa No.1109, Ground Floor, Nayapali, Bhubaneswar PAN/GIR No (Appellant This is an appeal filed by the assessee aga Addl/JCIT(A)-9, Mumbai 2/10081/2019 2. Shri Nihar Ranjan Charan Dass, ld Sr DR 3. It was submitted by ld AR been passed by the Assessing Officer disallowing the payment of remuneration to the partners. It was the submission that the remuneration to the partners are paid as per the provision as mentioned in the partnership deed, which is quantified in IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK ‘SMC’ BENCH, CUTTACK BEFORE SHRI GEORGE MATHAN, JUDICIAL ITA No.188/CTK/2024 Assessment Year : 2015-16 MS Sai Krupa Enterprises, Plot No.1109, Ground Floor, Nayapali, Bhubaneswar Vs. Income Tax Officer, Ward Bhubaneswar PAN/GIR No.ACLFS 3485 J (Appellant) .. ( Respondent Assessee by : Shri Nihar Ranjan Biswal, CA Revenue by : Shri Charan Dass, ld Sr DR Date of Hearing : 25/0 Date of Pronouncement : 25/0 O R D E R This is an appeal filed by the assessee against the order of the ld 9, Mumbai dated 6.2.2024 in Appeal No. 2/10081/2019-20 for the assessment year 2015-16. Nihar Ranjan Biswal, ld AR appeared for , ld Sr DR represented on behalf of the revenue. It was submitted by ld AR the assessment u/s.143(3) r.w.s been passed by the Assessing Officer disallowing the payment of remuneration to the partners. It was the submission that the remuneration to the partners are paid as per the provision as mentioned in the partnership deed, which is quantified in the resolution dated 31.3.2014. It Page1 | 3 IN THE INCOME TAX APPELLATE TRIBUNAL, , CUTTACK JUDICIAL MEMBER Income Tax Officer, Ward-5(2), Bhubaneswar Respondent) Biswal, CA , ld Sr DR 06/2024 /06/2024 nst the order of the ld in Appeal No.CIT(A),Bhubaneswar- appeared for the assessee. Shri represented on behalf of the revenue. the assessment u/s.143(3) r.w.s. 263 has been passed by the Assessing Officer disallowing the payment of remuneration to the partners. It was the submission that the remuneration to the partners are paid as per the provision as mentioned in the the resolution dated 31.3.2014. It ITA No.188/CTK/2024 Assessment Year : 2015-16 Page2 | 3 was the submission that proper opportunity was not given by the Assessing Officer to furnish the resolution dated 31.3.2014, therefore, same was not produced. Ld AR submitted that although before the ld CIT(A), the resolution was produced but same was not accepted on the ground that the resolution becomes a piece of additional evidence, which cannot be admitted in view of the provisions of Rule 46A of I.T.Rules, 1962. It was his prayer that the matter may be restored back to the file of the AO to consider the resolution dated 31.3.2014 for considering the payment of remuneration to the partners. 4. In reply, ld Sr DR submitted that the so called resolution referred by ld AR is an afterthought, therefore, same should not be accepted. 5. I have considered the rival submissions. The sole grievance of the assessee is against the disallowance of payment of remuneration of Rs.3,10,339/- to the partners. Ld AR submitted that in the resolution dated 31.3.2014, it is mentioned that the remuneration will be paid to the partners, which has not been considered by the ld CIT(A). It is the claim of the assessee that the payment of remuneration is quantified in the resolution of partnership deed. This being so, we set aside the order of the ld CIT(A) and restore the matter back to the file of the Assessing Officer to accept the resolution dated 30.3.2014 to be produced by the assessee and examine the same as per law and then consider on merits after allowing adequate opportunity of hearing to the assessee. ITA No.188/CTK/2024 Assessment Year : 2015-16 Page3 | 3 6. In the result, appeal of the assessee stands partly allowed for statistical purposes . Order dictated and pronounced in the open court on 25/06/2024. Sd/- (George Mathan) JUDICIAL MEMBER Cuttack; Dated 25/06/2024 B.K.Parida, SPS (OS) Copy of the Order forwarded to : By order Sr.Pvt.secretary ITAT, Cuttack 1. The Appellant : MS Sai Krupa Enterprises, Plot No.1109, Ground Floor, Nayapali, Bhubaneswar 2. The Respondent: Income Tax Officer, Ward- 5(2), Bhubaneswar 3. The Addl/JCIT(A)-9, Mumbai 4. Pr.CIT, Bhubaneswar 5. DR, ITAT, Cuttack 6. Guard file. //True Copy//