SHARE OF PROFIT

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This query is : Resolved

Yatesh Prakash Renuke (Querist)

08 July 2008 Hello Friends,

If the partnership firm is having 3 partners having equal share of profit. out of The 3 partners 1 partner had filed his I.T.Return for last 2 years incl. this year. But the firm & other 2 partners had not filed the ITR. The 3rd Partner had not considered his share of profit & interest & salary received from the firm. Now he does not want to revise his ITR. He will give his consideration on the stamp Paper that his income from the firm will be distributed to the other 2 partners. Whether it is acceptable?
If yes, in whose hands his income will be taxable (firm or other 2 partners)?

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)

08 July 2008 By merely non filing of IT Return by the Firm or other partners, he is not resolved of his liability to include the Interest or Salary as his income for the relevant year. Also, relinquishment of his share in favour of other partners will make no difference. In case he fails to furnish his Copy of Capital Account with the Firm, then the firm may be asked by the AO to furnish the Capital Account for that purpose.

Yatesh Prakash Renuke

Yatesh Prakash Renuke (Querist)

08 July 2008 But if the 3rd partner makes his statement today & for last 2 yrs then?

Yatesh Prakash Renuke

Yatesh Prakash Renuke (Querist)

08 July 2008 But if the 3rd partner makes his statement today & for last 2 yrs then?

Late CA Sampat Jain

Late CA Sampat Jain (Expert)

08 July 2008 THE RETURN OF THE FIRM IS PENDING........NOW AS PER SUPPLEMENTARY DEED EXECUTED BY ALL THE PARTNERS IN THE BEGINING THE NEW ARRANGEMENT IS CONFIRMED AND FIRM FILES RETURN ACCORDINGLY .........MAY BE SOME SOLUTION MAY COME ...............BUT UNILATERAL RELIQUISHMENT OF BENEFITS IS OF NO USE

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