1983 (1) TMI 128

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.... that arises out of this appeal is whether on the facts and in the circumstances of the case, the assessee is entitled to standard deduction under section 16(i) of the Income-tax Act, 1961 (' the Act '), out of salary income of Rs. 9,600 received as a partner from the firm of Narang Motor Transport Corporation. 2. The assessee is a partner in the firm of Narang Motor Transport Corporation having ....

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....come of the firm. The Supreme Court in the case of CIT v. R. M. Chidambaram Pillai [1977] 106 ITR 292 has held that a firm is not a legal person even though it has some attributes of personality. In income-tax law a firm is a unit of assessment, by special provisions, but is not a full person. Since a contract of employment requires two distinct persons, viz., the employer and the employee, there ....