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TMI Blog2022 (12) TMI 1225X X X X Extracts X X X X X X X X Extracts X X X X ..... e matter, Tribunal while confirming the order of the assessing officer held that payment made to the partners amounting to Rs.1,08,000.00 is not an allowable deduction as per Section 40(b)(v) of the Act. On due consideration, we do not find any error or infirmity in the view taken by the Tribunal. No question of law, not to speak of any substantial question of law, arises from the said order of the Tribunal.Appeal is devoid of any merit and the same is accordingly dismissed. - HON BLE THE CHIEF JUSTICE UJJAL BHUYAN AND HON BLE SRI JUSTICE C.V. BHASKAR REDDY Petitioner Advocate : M.M. Firdos Respondent Advocate ; K. Raji Reddy Senior SC Income Tax Dept JUDGMENT: (PER THE HON BLE THE CHIEF JUSTICE UJJAL BHUYAN) None ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before us is an assessee under the Act having the status of a firm. Assessment year under consideration is 2001-2002. Appellant is engaged in the business of trading in egg packing materials. While filing return of income, appellant claimed deduction of the remuneration of Rs.1,08,000.00 debited to profit and loss account. 6. After referring to clause 8.2 of the partnership deed comprising the appellant and after hearing the appellant, assessing officer held that appellant did not specify the amount of remuneration payable to each individual working partner nor did it lay down the manner of quantifying such remuneration. Hence, deduction of the remuneration claimed by the appellant to have been paid to the partners was disallowed and ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , what the aforesaid provision contemplates is that in the case of a firm, any payment of remuneration to any partner exceeding the amount mentioned therein shall not be deducted in computing the income chargeable under the head profits and gains of business or profession. 10. Before the CIT(A), appellant relied upon a circular of the Central Board of Direct Taxes (CBDT) bearing No.739 dated 25.03.1996, which is as under: It is clarified that for the assessment years subsequent to the assessment year 1996-97, no deduction under Section 40(b)(v) will be admissible unless the partnership deed either specifies the amount of remuneration payable to each individual working partner or lays down the manner of quantifying such remuneration. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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