https://www.taxtmi.com/caselaws?id=155509 The Appellate Tribunal ITAT Ahmedabad allowed the appeal of the assessee and dismissed the department's appeal. The disallowance of remuneration paid to partners under section 40A(2)(b) was deleted, amounting to Rs.27,00,000. The Tribunal held that the Assessing Officer cannot question the reasonableness of remuneration paid to a working partner under section 40(b). Additionally, the deductibility of Rs.7,00,000 paid to Surat Municipal Corporation was upheld, as it was deemed an impact fee for deviating from the approved plan, not a penalty for infringing the law. en-us Fri, 25 Sep 2009 00:00:00 +0530 Thu, 05 Sep 2013 10:20:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=155509 The Appellate Tribunal ITAT Ahmedabad allowed the appeal of the assessee and dismissed the department's appeal. The disallowance of remuneration paid to partners under section 40A(2)(b) was deleted, amounting to Rs.27,00,000. The Tribunal held that the Assessing Officer cannot question the reasonableness of remuneration paid to a working partner under section 40(b). Additionally, the deductibility of Rs.7,00,000 paid to Surat Municipal Corporation was upheld, as it was deemed an impact fee for deviating from the approved plan, not a penalty for infringing the law. Case-Laws Income Tax Fri, 25 Sep 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=155509