Remuneration to Partners as Representative of HUF Allowed u/s 40(b)

Shreeji Corporation Vs JCIT (ITAT Ahmedabad) The issue under consideration is whether remuneration paid to a partner acting in a representative capacity as karta of HUF is allowed u/s 40(b)? ITAT states that the expression ‘person’ as defined in the Indian Income-tax Act as well as in the Excess Profits Tax Act, HUF is not juristic person for all purposes. When two kartas of two Hindu undivided families enter into a partnership agreement the partnership is popularly described as one between the two Hindu undivided families hut in the eye of law it is partnership between the two kar...