Income Tax Appellate Tribunal Itat Nagpur Court October 2006 Judgments Home Cases Income Tax Appellate Tribunal Itat Nagpur 2006 Page 1 of about 1 results (0.013 seconds)

Assistant Commissioner of Income Vs. Vijay Kumar Patni, Ajay Kumar

Court : Income Tax Appellate Tribunal ITAT Nagpur

Reported in : (2007)108ITD409(Nag.)

1. All these appeals by Revenue and cross-objections by assessee are directed against orders of learned CIT(A)-II, Nagpur, dt. 18th June, 2004 in an appeal against assessment order framed under Section 143(3) r/w Section 147 of the IT Act (the Act).2. All the assessees are relatives and partners in a firm M/s Arun Automobiles, having equal share therein. Original assessments were completed under Section 143(1)(a) of the Act. Later on the AO found that the firm M/s Arun Automobiles is crediting the accounts of partners by way of interest and remuneration to the extent due to them based on mercantile system of accounting. However, when it comes to the hands of partners; the partners are offering the same only to the extent of amount withdrawn from such firm. It is the contention of the assessee partners that since they are following cash system of accounting, such interest income from firm is offered for taxation in the year of receipt and not in the year of credit to their accounts.The...