Remuneration to members of HUF for services rendered in business is allowable U/s. 37(1)

ACIT Vs Sri B. Sreeramulu (HUF) (ITAT Hyderabad) Briefly stated, assessee-HUF is deriving income from house property and trading of jewellery etc. There were survey operations conducted on 02-02-2006 and scrutiny assessment U/s. 143(3) of the Act was computed on a total income of Rs. 37,96,220/-. In that assessment, AO has allowed remuneration of Rs. 13,00,290/- to the three members of the HUF for their services. On the reason that remuneration to co-parceners is not allowable U/s. 184 or U/s. 40(b) of the Act, proceedings were reopened U/s. 147 by issuance of notice U/s. 148 on 13-03-2013. I...