Answers By Expert: such an arrangement is possible. AMT is on the basis of total computation of income of all consolidated projects and is not computed project wise.
Assessee is LLp having 8 partners, engaged in business of construction. Is having 4 diffrent housing project . One project which is eligible for deduction u/sec.80IBA of which profits are shared equally. Remaining 3 projects which are not eligible for deduction u/sec.80IBA , they have decided to share profit sharing ratio in diffrent ration as per their mutual understanding due to involvement of partners, capital contribution by the partners . Issues : 1. Whether this arrangement is permissible under LLP act as well as Income Tax Act 2. Whether credit of AMT paid on project can be use against tax…
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ARRANGEMENT OF PARTNERS IN LLP