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2021 (1) TMI 835 - AT - Income TaxDisallowance of salary and remuneration paid to one of the partners - altered and amended clause 4 and 10 of the original deed of partnership and authorized payment of interest and salary / remuneration to fulfill in accordance to the provision of Section 40(b) - HELD THAT:- Authorities below erred in disallowing the claim and misdirected themselves by looking into the clause 8 of the old partnership deed which in no way conflict with that of the subject matter discussed in clause 10 - As brought to our notice that after the supplementary deed has been executed on 10.05.1996 i.e. from AY 1997-98 till AY 2014-15, the assessee Firms’ expenditure on account of salary / remuneration to Smt. Sharmila Dugar has not been disallowed. On the principle of consistency also the claim which was rightly claimed should not have been disallowed. So we find force in the submission of the Ld. AR Shri S. P. Bhati that the assessee Firm has rightly claimed the salary and remuneration to its partner Smt. Sharmila Dugar at ₹ 2.50 lakhs as provided for in amended supplementary deed dated 10.05.1996 and so, I direct the AO to allow ₹ 2.50 Lakhs claimed by the assessee Firm for salary/ remuneration to Smt. Sharmila Dugar. We direct the AO to allow the claim of expenditure in respect of remuneration/salary partner Smt. Sharmila Dugar.
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