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Circular specifying that partnership deed should specify the remuneration, is invalid
Case Law Details
- Case Name
- M/s Durga Dass Devki Nandan Vs. Income-tax Officer (Himachal Pradesh High Court)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Courts
- All High Courts, Himachal Pradesh HC
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CBDT Circular No. 739 dated 25.3.1996 which specifies that for section 40(b)(v), the partnership deed should specify the remuneration, is invalid
M/s Durga Dass Devki Nandan Vs. ITO (HP High Court) – The CBDT circular can only be held to be valid if it is in terms of the main section. As held above, the Section 40(b)(v) only lays down that either the working partner should be paid an amount specified in the partnership deed or it should not exceed the amount laid down in the Section. In the present case the partners have been paid their remuneration/salary strictly in ac...
