Remuneration of Partners Not Salary Income: ITAT Pune

Kiran Vasant Pawar Vs ITO (ITAT Pune) Introduction: The Income Tax Appellate Tribunal (ITAT) Pune recently examined a case where the Income Tax department had categorized the remuneration received by a partner as salary income, leading to an addition of Rs. 78,064 to the partner’s income. The case of Kiran Vasant Pawar vs. Income Tax Officer (ITO) is one that sheds light on the misinterpretation of tax provisions, particularly concerning partners’ remuneration. 1. Background of the Case: The appellant, Kiran Vasant Pawar, was engaged in the profession of consulting engineering and ...