https://www.taxtmi.com/caselaws?id=8105 Salary paid by a firm to its partners was held not deductible in computing the firm's business income where section 10(4)(b) of the Indian Income-tax Act, 1922 applied. Although such payment might otherwise qualify as business expenditure laid out wholly and exclusively for business, the provision was treated as an absolute statutory bar on any allowance for salary, commission, remuneration or interest paid by a firm to any partner. The fact that the partners were also kartas of their Hindu undivided families did not alter the position, because the partner's capacity was irrelevant to the firm's deduction claim. A contractual agreement for remuneration could not override the prohibition. en-us Tue, 19 Jan 1971 00:00:00 +0530 Sat, 28 Mar 2009 17:18:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8105 Salary paid by a firm to its partners was held not deductible in computing the firm's business income where section 10(4)(b) of the Indian Income-tax Act, 1922 applied. Although such payment might otherwise qualify as business expenditure laid out wholly and exclusively for business, the provision was treated as an absolute statutory bar on any allowance for salary, commission, remuneration or interest paid by a firm to any partner. The fact that the partners were also kartas of their Hindu undivided families did not alter the position, because the partner's capacity was irrelevant to the firm's deduction claim. A contractual agreement for remuneration could not override the prohibition. Case-Laws Income Tax Tue, 19 Jan 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8105