https://www.taxtmi.com/caselaws?id=7702 Salary paid to a managing partner and another partner was allowable as a deduction where the payments reflected services actually rendered and were not a device to evade tax. The managing partner had performed substantial work beyond an ordinary partner's role, including staff management, finance, borrowing, litigation matters, and account maintenance, while the other partner supervised the estate and handled field work in the superintendent's absence. On these facts, the sums were treated as real business expenditure under section 5(e) of the Madras Agricultural Income-tax Act, 1955. The existence of a loss in the accounting year did not by itself justify disallowance when the services were established on record. en-us Wed, 12 Nov 1969 00:00:00 +0530 Tue, 17 Mar 2009 17:04:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7702 Salary paid to a managing partner and another partner was allowable as a deduction where the payments reflected services actually rendered and were not a device to evade tax. The managing partner had performed substantial work beyond an ordinary partner's role, including staff management, finance, borrowing, litigation matters, and account maintenance, while the other partner supervised the estate and handled field work in the superintendent's absence. On these facts, the sums were treated as real business expenditure under section 5(e) of the Madras Agricultural Income-tax Act, 1955. The existence of a loss in the accounting year did not by itself justify disallowance when the services were established on record. Case-Laws Income Tax Wed, 12 Nov 1969 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7702