https://www.taxtmi.com/caselaws?id=11689 Remuneration paid by a firm to an individual working partner is not disallowable under section 40(b) merely because the partner is a nominee of a Hindu undivided family. The partnership relationship exists between the firm and the individual partner, and the Hindu undivided family does not enter that contractual arrangement. A partner may account to his family for amounts received, but for assessment of the firm the payment remains one to the partner as such. Explanation 4 to section 40(b) reinforces this position by treating a working partner as an individual actively engaged in the firm's business, even if he represents a Hindu undivided family. en-us Wed, 26 Mar 2003 00:00:00 +0530 Fri, 05 Feb 2010 19:57:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=11689 Remuneration paid by a firm to an individual working partner is not disallowable under section 40(b) merely because the partner is a nominee of a Hindu undivided family. The partnership relationship exists between the firm and the individual partner, and the Hindu undivided family does not enter that contractual arrangement. A partner may account to his family for amounts received, but for assessment of the firm the payment remains one to the partner as such. Explanation 4 to section 40(b) reinforces this position by treating a working partner as an individual actively engaged in the firm's business, even if he represents a Hindu undivided family. Case-Laws Income Tax Wed, 26 Mar 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=11689