Paranjpe & Paranjpe, Chartered Accountants vs. Income Tax Officer

Parties Involved

Facts Summary

The assessee filed an appeal against the order of the learned Additional Joint Commissioner of Income Tax (Appeals)-NFAC, Delhi, dated 25.02.2026, for the assessment year 2019-20. The assessee raised four grounds of appeal, primarily challenging the disallowance of remuneration to the partners without any specified reason and without issuing a show cause notice. The partnership deed clearly provided for the payment of remuneration to the partners, and there was no such disallowance made in earlier or subsequent assessment years.…

Legal Issues

• 1. Whether the impugned order is void as it violates the provisions of section 143.
• 2. Whether the Assessing Officer erred in disallowing remuneration to the partner under section 143(1).
• 3. Whether the Commissioner Appeal erred in dismissing the appeal.
• 4. Whether the demands for interest are erroneous and need to be set aside.

Judgment Outcome

Decided in favour of Assessee.

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