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2011 (10) TMI 384 - HC - Income TaxDeductability of salary and interest paid by firm - Non registration of firm with original partnership deed - AO disallowed interest and salary as were not in accordance with partnership deed - Held That:- As per Circular No.739, read with provisions of 40B, where neither the amount of wages has been quantified nor even the limit of total remuneration has been specified and that the same has been left to be determined by the partners at the end of the accounting period, such payment of remuneration to partners cannot be allowed as deduction in the computation of the firm's income. - Decided against assessee.
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