https://www.taxtmi.com/caselaws?id=7193 A firm's remuneration payment to a partner is not deductible as business expenditure under section 10(4)(b) of the Income-tax Act, 1922, even where that partner acts as karta of a Hindu undivided family. The legal relationship remains one between the firm and the individual partner for tax purposes; the partner's representative capacity does not change the character of the payment. Accordingly, salary or remuneration paid by the firm to such a partner falls within the statutory prohibition and cannot be claimed under section 10(2)(xv), although any partnership profits may still be assessed in the hands of the family represented by the partner. en-us Tue, 05 Dec 1967 00:00:00 +0530 Thu, 12 Feb 2009 12:38:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7193 A firm's remuneration payment to a partner is not deductible as business expenditure under section 10(4)(b) of the Income-tax Act, 1922, even where that partner acts as karta of a Hindu undivided family. The legal relationship remains one between the firm and the individual partner for tax purposes; the partner's representative capacity does not change the character of the payment. Accordingly, salary or remuneration paid by the firm to such a partner falls within the statutory prohibition and cannot be claimed under section 10(2)(xv), although any partnership profits may still be assessed in the hands of the family represented by the partner. Case-Laws Income Tax Tue, 05 Dec 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7193