Assessment of firm

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 December 2012 Dear Experts, In one case, AO has disallowed some expenses of partnership firm. Firm distributed remuneration to partners as per section 40(b). Even partnership deed provides manner of distribution of remuneration as per section 40(b). Now, Profit has increased as expenses are disallowed. My question is, 'Can I compute revised remuneration as profit is increased & reduce tax liability of firm? can I do so by making application u/s 154?' Mistake apperant from record which I will claim is 'Wrong computation of Business income'. Can I do so? Please guide.

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

27 December 2012 No, that is not the INTENT of LAW.
Another point worth considering could be.... if you recast the remuneration at this stage..... the PARTNERS' returns may be a good bet for 271(1)(c)

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

27 December 2012 Thank you sir for quick reply.
So, in your opinion there is no room for additional remuneration to partners out of amount which is disallowed by AO.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

SARAVANAN PALANISAMY

Vishnu Agarwal

SHUBHANGI GOEL

Shivchandra Jakhotia

CA Lalit Kumar Agrawal

Subscribe Now

Assessment of firm

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA