Income-tax Act, 1961 · Chapter XVI: Special Provisions Applicable to Firms · A.—Assessment of firms
Section 185: Assessment when section 184 not complied with
The Income-tax Act, 1961 was repealed by the Income-tax Act, 2025 from 1 April 2026. The text is kept here because the judgments below apply it.
Notwithstanding anything contained in any other provision of this Act, where a firm does not comply with the provisions of section 184 for any assessment year, the firm shall be so assessed that no deduction by way of any payment of interest, salary, bonus, commission or remuneration, by whatever name called, made by such firm to any partner of such firm shall be allowed in computing the income chargeable under the head —Profits and gains of business or profession‖ and such interest, salary, bonus, commission or remuneration shall not be chargeable to income-tax under clause (v) of section 28.]]
C.—Changes in constitution, succession and dissolution
Source: India Code (Legislative Department), the text of the Act as it stood before its repeal. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.
Supreme Court judgments citing the section 185
- Commissioner of Income Tax, Kanpur v. Nitya Nano Devkinandan
- M/S. Progressive Financers v. The Commissioner of Income Tax, Madras
- Commissioner of Income Tax, Andhra Pradesh v. B. Posetty and Co.
- Bihari Lal Jaiswal v. The Commissioner of Income Tax
- Sri Ramamohan Motor Service v. Commissioner of Income-Tax, Hyderabad