Section 40(b)(v): Partnership Deed Need Not Quantify Partner’s Remuneration: Rajasthan High Court

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From: editor@itatonline.org <itatonline.org@gmail.com>
Date: Wed, May 2, 2012 at 6:19 PM
Subject: Message from EGroup of SolapurCAs S. 40(b)(v): Partnership Deed Need Not Quantify Partner's Remuneration: Rajasthan High Court
To: editor@itatonline.org

 

Dear Subscriber,

 

The following important judgement is available for download at itatonline.org.

CIT vs. M/s. The Asian Marketing (Rajasthan High Court)

S. 40(b)(v): Partnership deed need not quantify partner's remuneration

 

The assessee's partnership deed provided that the partners would be paid remuneration / salary "according to the standards and norms fixed by the relevant provisions of the Income Tax Act, 1961". The AO disallowed the claim for deduction of the salary paid to the partners u/s 40(b)(v) on the ground that as the deed did not quantify the amount of remuneration. This was reversed by the CIT (A) and Tribunal. On appeal by the department, HELD dismissing the appeal:

(Click Here To Read More)

Regards,

Editor,

itatonline.org

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