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1 - 10 of 16 (0.32 seconds)Section 37 in The Income Tax Act, 1961 [Entire Act]
Section 30 in The Income Tax Act, 1961 [Entire Act]
The Income Tax Act, 1961
Section 10 in Income Tax Rules, 1962 [Entire Act]
Section 32 in The Income Tax Act, 1961 [Entire Act]
Section 36 in The Income Tax Act, 1961 [Entire Act]
Commissioner Of Income-Tax, Bihar vs Ramniklal Kothari on 7 March, 1969
In Commissioner of Income-tax v. Ramniklal Kothari, [1964] 54 I.T.R. 232 (Pat.), it was held that the income earned by an individual from his share in a partnership business is income derived from business and if an expenditure was incurred by a partner for the purpose of earning profits, from the partnership business, the assessee would be entitled in his individual assessment to claim deduction of the amount under Section 10(2)(xv) of the Income-tax Act or under the general principles.
Income Tax Rules, 1962
The South India Corporation(P) Ltd vs The Secretary, Board Of ... on 13 August, 1963
5. In the light of these decisions and other decisions which took a similar view, Sri Rama Rao, standing counsel for the department, conceded that the depreciation on the building of the assessee used for the purpose of business of the firm, of which she was a partner could be allowed as a permissible deduction under the Indian Income-tax Act, 1922, but he submitted that the position under the Act of 1961 is different. Though the latter Act contains provisions similar to Sections 10(2)(vi) and 10(2)(xv) of the Indian Income-tax Act, 1922, there is a special provision, namely, Section 67, which deals with the method of computing a partner's share in the income of the firm. Under Section 67(3) it is provided that any " interest paid by a partner on capital borrowed by him for the purposes of investment in the firm shall, in computing his income chargeable under the head ' Profits and gains of business or profession in respect of his share in the income of the firm, be deducted from the share". He argued that the sub-section is exhaustive of the permissible deductions in computing a partner's share in the income of the firm, and except the interest paid by the partner on the capital borrowed by him, no other deduction is permissible. He submitted that the provisions in Sections 30 to 37 which provide for various deductions have no application to the case of a partner's share in the income of the firm. He relied on decisions which lay down that if there is a special provision and a general provision in an enactment, the special provision shall prevail : vide South India Corporation (P.) Ltd. v. Secretary, Board of Revenue, and Subhodchandra Popatlal v. Commissioner of Income-tax, [1953] 24 I.T.R. 566 (Bom.) and Excess Profits Tax. We do not consider that this principle has any
application to the circumstances of this case. We do not find anything in the Act of 1961 which either expressly or impliedly precludes the application of Sections 30 to 37 to the case of a partner's share in the income from the firm. It is true, Section 67 refers to the method of computing a partner's share and Section 67(3) provides for deduction of interest paid by a partner on capital. The section, however, does not provide that any other deduction is not permissible. We do not find anything in the Act which will also imply that deductions under Sections 30 to 37 are not permissible in, the case of a partner's share in the income of the firm.