Remuneration including bonus to partners should be within permissible limit u/s 40(b)

Luthra & Luthra LLP Vs ACIT (ITAT Delhi) ITAT Delhi held that total allowance of the remuneration (including bonus) to the partners has to be within the permissible limit of provisions of section 40(b) of the Income Tax Act. Facts- The return of income of the assessee was taken up for scrutiny assessment u/s. 143(3) of the Income Tax Act, 1961 and the assessment was framed vide order dated 02.12.2016. AO made disallowance out of salary to partners u/s. 40(b) of the Act in respect of bonus paid to the partners amounting to Rs. 15,47,500/-. Aggrieved against this, the assessee preferred appe...