Section 14A
This query is : Resolved
05 December 2010
A person introduces capital in the firm from outside borrowings on which interest payable by him is Rs 60000/-.
He receives Rs 30000/- as Interest on Capital, 50000/ as Remuneration and 100000/ as Share in Profit(After Tax) from the Firm.
Can Section 14A be invoked by the ITO?
He receives Rs 30000/- as Interest on Capital, 50000/ as Remuneration and 100000/ as Share in Profit(After Tax) from the Firm.
Can Section 14A be invoked by the ITO?
07 December 2010
Yes.
Please refer :- Decided by: ITAT, MUMBAI BENCHES `H’, In The case of: Dharmasingh M. Popat v. ACIT, Appeal No.: ITA No. 7534/Mum./2004, Decided on: January 6, 2009.
HELD: income charged in the hands of partnership firm can not be treated as being a non-exempt income in the hands of a partner of such firm and, therefore, provisions of section 14-A would be applicable in computing the total income of such partner in respect of his share in the profits of such firm.
Please refer :- Decided by: ITAT, MUMBAI BENCHES `H’, In The case of: Dharmasingh M. Popat v. ACIT, Appeal No.: ITA No. 7534/Mum./2004, Decided on: January 6, 2009.
HELD: income charged in the hands of partnership firm can not be treated as being a non-exempt income in the hands of a partner of such firm and, therefore, provisions of section 14-A would be applicable in computing the total income of such partner in respect of his share in the profits of such firm.
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