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TMI Blog1971 (4) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... n allowable deduction under the provisions of the Income-tax Act – Held, yes - held that remuneration paid to such worker by the partner is deductible from his remuneration received from the firm - - - - - Dated:- 29-4-1971 - Judge(s) : H. N. SETH., R. S. PATHAK. JUDGMENT The judgment of the court was delivered by H. N. SETH J.-The Income-tax Appellate Tribunal has referred the following ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessee's share in the income of the said firm was determined at Rs. 18,843, This amount included a sum of Rs. 12,000 which was payable to Shri K.L. Raizada for working as assistant managing director under the partnership deed of M/s. Standard Co. The deed of partnership provided that Shri K.L. Raizada was entitled to nominate any person other than himself to be the whole-time worker of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rst place, accrued to Shri K.L. Raizada and be in his own turn employed Shri Suri and paid the entire remuneration to him for his services. It held that the salary paid to Shri Suri could be treated as salary paid to Shri K.L. Raizada as partner of M/s, Standard Co. In the circumstances, the Income-tax Officer was justified in treating the said salary as paid to a partner in the assessment of M/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... behalf. In order to earn the salary as mentioned in clause (7) of the partnership deed the assessee had necessarily to spend that, amount in the shape of remuneration paid to Shri P. N. Suri. Shri K.L. Raizada did not keep any part of the salary to himself, but he parted with the entire amount and gave it to Shri P.N. Suri. In the result, the Tribunal held that Shri K.L. Raizada, the assessee, ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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