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2011 (8) TMI 750 - AT - Income TaxSalary to partners u/s 40(b) - partner is representative of HUF - Explanation to section 40(b) - held that:- a working partner can be an individual who is actively engaged in conducting the affairs of business of the firm of which he is a partner. It is not the objection of the Assessing Officer or of Ld. DR of the Revenue that salary was not paid by the firm to an individual. It is also not an objection that the concerned individual is not actively engaged in conducting the affairs of the business of the assessee-firm. - The objection is this that such individual is not a partner of the assessee-firm in his individual capacity but he is a partner in the capacity of representative of HUF of which he is a karta and for this reason, the Revenue has rejected the claim of the assessee. - in view of the judgment of Hon'ble apex court rendered in the case of Rashik Lal & Co. (1997 -TMI - 5629 - SUPREME Court), deduction u/s 40(b) allowed - Decided in favor of assessee.
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