Details must be provided of Interest on loan and the salary paid to partner as prescribed in the Act is allowed whether he is absent at the time of survey

Last updated: 17 December 2011

Court :
Income Tax Appellate Tribunal

Brief :
In completing the assessment, the assessing authority has made addition of ` 49,534/- as disallowance of interest attributable to loan creditors. The assessee’s books of accounts contained loan credits brought down from the earlier assessment year and still continuing. The assessee has provided interest thereon. It is that interest which is now disallowed by the assessing authority. The same has been confirmed by the Commissioner of Income Tax(Appeals). The assessee is aggrieved and therefore the second appeal before the Tribunal. The grounds raised by the assessee are as follows:- “1. The order of the Commissioner of Income Tax(Appeals) is contrary to the facts and circumstances as also the legal position obtaining in the case of the appellant. 2. The Commissioner of Income Tax(Appeals) has disallowed the salary paid to lady partners since become they had not worked in the shop at that time of survey. 3. For these and other reasons that may be adduced at the time of hearing, it is prayed that the additions made as above be deleted.”

Citation :
M/s. V.Swaminatha Iyer & Co., No.55, T.S.R.Big Street, Kumbakonam. PAN: AAAFV5691E (Appellant) Vs. The Deputy Commissioner of of Income Tax, Circle-I, Kumbakonam.(Respondent)