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2012 (5) TMI 56 - HC - Income TaxRemuneration payable to Working partner allowed by Tribunal - Revenue appeal that the amount of remuneration has not been quantified in the partnership deed – Held that:- Section 40(b) (v) specifies that remuneration is to be authorized by partnership deed to a working partner, the working partner has been defined in explanation 4 opportunity Section 40(b), Clause 8 of the partnership deed relates to the entitlement of remuneration to the to the partners - It is mentioned in clause 8 of the partnership deed that remuneration will be payable as per norms fixed by the relevant provisions of the Income-tax Act, thus the quantification of the remuneration is apparent from the clause 8 - the requirement in law is that remuneration should have been authorized and the amount of remuneration shall not exceed the amount as mentioned in sub-clause (v) of Section 40 (b)- the remuneration receivable by the partners is taxable in their hands and it is not the case of the Revenue that the assessee has claimed remuneration to the working partners to avoid tax – against revenue.
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