1980 (10) TMI 121

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..... j, G. Nagarajan and N.G. Harinath to the extent of Rs.16,266, Rs. 10,217 and Rs. 840 respectively, is disallowable as the payments were made to partners under s. 40(b) of the Act. 2. In the ITO's order there is reference only to the addition of chit commission of Rs. 27,323. There is no reason or any discussion relating to this. When the matter came before the CIT (A), it was contended that the .....

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..... cribers to chit groups was more safer than taking outsiders. She relied on the Full Bench decision of the Allahabad High Court in the case of CIT vs. Ram Laxman Sugar Mills 90 ITR 73. There it is pointed out that the partners received remuneration as an authorised controller and not as partner and so it would not be a remuneration paid by the firm to a partner thereof and the bar imposed by s. 10( .....

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