https://www.taxtmi.com/caselaws?id=11201 Remuneration paid by a firm to a partner is disallowable under section 40(b) of the Income-tax Act even where it is described as consideration for technical or expert services in a different capacity. The controlling principle is that the statutory bar applies to payment made to a partner as a partner in any capacity, and the label attached to the payment or an artificial split of roles does not change its character. The earlier contrary view is noted as inconsistent with the law declared by the Supreme Court, and the later Explanation 2 is described as limited in scope and not governing the assessment year discussed. en-us Tue, 25 Nov 2003 00:00:00 +0530 Sat, 01 Aug 2009 17:53:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=11201 Remuneration paid by a firm to a partner is disallowable under section 40(b) of the Income-tax Act even where it is described as consideration for technical or expert services in a different capacity. The controlling principle is that the statutory bar applies to payment made to a partner as a partner in any capacity, and the label attached to the payment or an artificial split of roles does not change its character. The earlier contrary view is noted as inconsistent with the law declared by the Supreme Court, and the later Explanation 2 is described as limited in scope and not governing the assessment year discussed. Case-Laws Income Tax Tue, 25 Nov 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=11201