Remuneration to partners cannot be disallowed merely because share of partners not fixed or deed not provides for manner of quantification of such remuneration

Panda Fuels Vs ITO (ITAT Cuttack) We have heard the rival submissions, perused the orders of lower authorities and materials available on record. In the instant case the Assessing Officer disallowed deduction for remuneration paid to partners of Rs.6,64,923/- on the ground that the partnership deed does not provide for remuneration to partners. The same was confirmed in appeal by the CIT(A) on the ground that the remuneration to individual partners has neither fixed in the deed nor the deed provides for the manner of quantification of such remuneration. As per the provisions of Income tax At, ...