Assessee debited Rs. 2,88,000/-as remuneration to partners. AO and CIT(A) disallowed basis section 40(b). Assessee claimed within limits under S.40(b)(v). On appeal, Tribunal accepted the disallowance as partnership deed did not specify any quantum or procedure to quantify remuneration to partners. AO and CIT(A) order confirmed. (AY. 2015-16)
Quality Traders v. ITO (2021) 87 ITR 26 (SN) (Delhi)(Trib.)
S. 40(b) : Amounts not deductible-Partnership-Remuneration payable to partners. Partnership Deed not specify manner of computation. Disallowance accepted. [S. 40(b)(v)]