1972 (1) TMI 10 - HC - Income Tax

Assessee, a partner in a registered firm appointed a person for looking after his interests in the partnership assessee derived share income - from the share income received by him, the assessee claimed as deduction under section 10(2)(xv) of the Income-tax Act, 1922, of the salary paid - even though the share income was arrived at after giving deductions under s. 23(5)(a), such expenditure is allowable under section 10(2)(xv)

Summary

The High Court of Madras ruled in favor of the assessee, allowing deduction of salary paid to Mr. Dalmia from share income. The decision was based on previous court rulings and the finding that Mr. Dalmia was rendering services only to the assessee, not the firm. The Tribunal upheld the assessee's right to claim the deduction under section 10(2)(xv) in his individual assessment.