https://www.taxtmi.com/caselaws?id=203048 The High Court considered the interpretation of Section 40(b)(i) of the Income Tax Act regarding the disallowance of salary paid to partners in HUF capacity. The court held that the salary paid to a working partner, represented as Karta of HUF, is deductible in computing the firm's income. It emphasized that remuneration is deductible only when paid to a working partner actively engaged in the firm's affairs, clarifying that a Hindu Undivided Family cannot be a partner in a partnership firm. The court dismissed the revenue's appeals, affirming the deduction of such salary payments. en-us Fri, 28 Jan 2011 00:00:00 +0530 Tue, 11 Dec 2012 11:13:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=203048 The High Court considered the interpretation of Section 40(b)(i) of the Income Tax Act regarding the disallowance of salary paid to partners in HUF capacity. The court held that the salary paid to a working partner, represented as Karta of HUF, is deductible in computing the firm's income. It emphasized that remuneration is deductible only when paid to a working partner actively engaged in the firm's affairs, clarifying that a Hindu Undivided Family cannot be a partner in a partnership firm. The court dismissed the revenue's appeals, affirming the deduction of such salary payments. Case-Laws Income Tax Fri, 28 Jan 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=203048