Commission to partner not authorised by partnership deed is not deductible

HIGH COURT OF KARNATAKA Dr. Bidari Ashwini Hospital v/s. Income-tax Officer, Ward-1, Bijapur IT APPEAL NOS. 869 TO 872 OF 2008 SEPTEMBER 24, 2010 JUDGMENT N. Kumar, J. A common question of law is involved in all these four appeals. Therefore, they are taken up for consideration together and disposed of by this common order. 2. For proper appreciation of the legal position, facts in one of the cases is set out. M/s. Srinath Drugs Distributors, is a partnership firm. It consisted of five partners. Two of the partners D.C. Darbar and R.C. Darbar represented their Hindu Undivided ...