1980 (10) TMI 121 - AT - Income Tax

Summary

The appeal considered whether a chit kasar payment to partners is disallowable under section 40(b) of the Income Tax Act. The Appellate Tribunal found that the payment was a rebate to subscribers, not a payment to partners, and thus section 40(b) did not apply. The addition of Rs. 27,323 was deleted, and the appeal was allowed.