Remuneration to partners not allowable if Assessee fails to comply with section 184(2)

MART Vs ACIT (ITAT Delhi) The issue in dispute before us in respect of remuneration given to the partners, which has been disallowed in terms of section 185 of the Act, which says that “if a firm does not comply with the provisions of section 184 of the Act for any assessment year, then no deduction by way of payment of interest, salary, bonus, commission or remuneration made by the firm to any partner of such firm shall be allowed”. The section 184 of the Act requires that a certified copy of the instrument of the partnership should be accompanied along with the return of income o...