https://www.taxtmi.com/caselaws?id=77648 The High Court upheld the disallowance of salaries paid to non-working partners under sections 40(b) and 40A(2) of the Income-tax Act, despite the Commissioner of Income-tax (Appeals) allowing the claim. The High Court found the partners were not engaged in business activities but chose not to interfere due to finality of assessments, declaring the orders not binding for future cases. Additionally, the High Court confirmed the disallowance of 25% of expenditure paid to partners or their relatives under section 40A(2)(a) of the Act, reversing the Tribunal's decision and restoring the disallowance in assessment for this issue. en-us Thu, 26 Mar 2009 00:00:00 +0530 Thu, 30 Sep 2010 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=77648 The High Court upheld the disallowance of salaries paid to non-working partners under sections 40(b) and 40A(2) of the Income-tax Act, despite the Commissioner of Income-tax (Appeals) allowing the claim. The High Court found the partners were not engaged in business activities but chose not to interfere due to finality of assessments, declaring the orders not binding for future cases. Additionally, the High Court confirmed the disallowance of 25% of expenditure paid to partners or their relatives under section 40A(2)(a) of the Act, reversing the Tribunal's decision and restoring the disallowance in assessment for this issue. Case-Laws Income Tax Thu, 26 Mar 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=77648