Remuneration mutually agreed between partners is allowable if partnership deed permits the same subject to limit u/s 40(b)

ACIT Vs. M/s Sri Navodaya Granite Industries (ITAT Visakhapatnam) However, we have gone through the partnership deed and in the partnership deed with regard to payment of remuneration,there was a clause for increase/decrease of remuneration as per mutual consent before the end of the financial year. In the instant case, there were only two partners. The P&L account and the financial statement were examined by both the partners and agreed for payment of remuneration of Rs. 5,30,000/. The partnership deed also limits the remuneration as permissible u/s 40(b) of I.T. Act. Since there are only...