- (1.) RETURN of income has been filed on October 8, 1997, vide R. No. 3183 declaring total income of Rs. 60,250 in the status of PFAS. This case has been selected for scrutiny on random sample basis by issue of notice under Section 143(2) of the Income -tax Act. In response to notice under Section 143(2) of the Income -tax Act, Shri S.C. Agarwal, advocate, and authorised representative of the assessee attended with whom case has been discussed. After discussion, returned income is accepted.
(2.) ASSESSED under Section 143(2) of the Income -tax Act. Issue necessary forms. Give credit for prepaid taxes. Bhilwara sd/. R.S. Kedawal, dated June 16, 1998, Income -tax Officer, Ward I, Bhilwara. Office NOTE : In this case proposed for taking this case for check scrutiny along with assessment records was sent to the DCIT, Ajmer, vide this office letter No. 1355, dated March 10, 1998, up to May 25, 1998, check approval from the DCIT, Ajmer, and assessment records not reed, and in the meantime this case has been selected for scrutiny on random basis as per number allotted by the DCIT Ajmer. Since the asst. records was check in DCIT, Ajmer. The notice under Section 143(2) was issued without going through the case fixing the hearing for June 12, 1998. The asstt. records check on June 9, 1998. This case was taken up for hearing on June 16, 1998. On this date Shri S.C. Agarwal, advocate and authorised representative of the 'A' attended, stated that the returned income for the assessment year 1997 -98 excess more than 40 per cent, of the income declared in the assessment year 1996 -97 as such this case should have excluded from the purview of scrutiny, the contention of the authorised representative of the A appears to be in order. Since notice under Section 143(2) stands issued therefore the asstt. is completed under Section 143(2). Income -tax Officer.
(3.) IT came to the notice while going through the audit by the audit party that assessee has claimed deduction of Rs. 1,27,650 from the profit of the firm was salary paid to the partners of the firm under Section 40(b)(v), such deduction can be allowed if there is an agreement to that effect in the partnership deed. As per the report, there was no partnership deed on the record of assessment proceedings. It was apprehended that this deduction is contrary to Section 40(b).;