Case Law Details
RELEVANT PARAGRAPH
10. We have ” considered the arguments advanced by the parties in the view of the various judicial pronouncements cited at bar and with reference to the material placed on record and referred to. Firstly, we shall advert to the issue whether the controversy in hand that in the facts and circumstances of the case, the subjected amounts of interest could be treated as business income or income from other sources is essentially required to resolve the main dispute relating to the allowability or otherwise the claim of deduction made u/s 40(b) on the net profit, which also included the subjected amount of interest. We agree with the contention of the Id. Counsel, for the assessee that a pertinent question, which certainly arises in the present case is as to whether the technical classification as done by the authorities below u/s 14 r/w Sec.28 or Sec.56, was at all required on the facts of the present case and in the law, with which, we are concerned’ in as much as the present claim of deduction of remuneration to the partners, was made u/s 40(b) of the Act. For this purpose, we shall first refer to the provisions of Sec.40(b), the relevant extracts from the said provision arc also reproduced here under in verbatim:
S40(a) XXX — XXX XXX
fb) in the cose of any firm asses sable as such,—
i) any payment of salary, bonus, commission or remuneration, by whatever name called (hereinafter referred to as “remuneration” ) to any partner who is not a working partner;
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