13 March 2014
Sir, 1. The assessee is Partnership Firm, engaged in the business of manufacturing activity. 2. However, during the year there is no business activity. 3. Further the firm has let out its property and in receipt of rental income. 4. Therefore, letting out income is treated as Income from Other Sources.
So, 1. Is Interest on Partners Capital and remuneration allowed as expenditure, even though income is taken under the head Income from Other Sources? 2. what about applicability of provisions of Sec. 40(b), 269SS, 269T of the I.T. Act, 1961?
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