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2005 (2) TMI 85 - HC - Income TaxApplicability of section 40(b) - "Whether remuneration paid as business adviser to a partner of the firm is covered under the provisions of section 40(b) or not?" - it is a case where the business adviser was rendering services to the respondent-firm and not to the company. Since he was a partner in the respondent-firm, the provisions of section 40(b) of the Act were clearly attracted. Payment has been made directly by the respondent-firm to one of its partners, namely, Sri Sardar Nanak Singh, for the advice rendered by him. - In this view of the matter, the Tribunal was not justified in holding that the provisions of section 40(b) of the Act are not attracted.
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