Tag Archives: Section 40(b)

Assessing Officer could not disallow bonus to non working partner

Where in terms of partnership deed assessee-firm paid bonus to all partners including working partners, conditions prescribed under section 40(b) stood fulfilled and, thus, Assessing Officer could not disallow said payment in case of one partner holding that he was not a working partner IN THE ITAT JAIPUR BENCH Id. Mohd. Nizamuddin v. Assistant Commissioner… Read More »

Partners remuneration on net profit

Q: Whether for the purpose of calculation of partners remuneration , Interest earned on FDRs etc to be excluded as this income will come under the “head income from other sources”  ?  OR Q Partners remuneration has to be calculated on the income shown under the head “Income  from Business or Profession” or on Net profit… Read More »