The assessee-firm was running a hospital. The Assessing Officer disallowed the remuneration paid to partners on the ground that the same was paid in cash. CIT(A) upheld the order of the Assessing Officer. On appeal, the Tribunal held that the remuneration had been given to partners as per the partnership deed and within the limit prescribed under section 40A(b)(v). Tribunal also held that there was no legal bar for a firm to pay partners’ remuneration in cash and that the genuineness of said payment was not in doubt. Accordingly, the disallowance was deleted. (AY. 2019-20)