https://www.taxtmi.com/caselaws?id=12616 The court held that the disallowance of salary payments to partners under Section 40(b) of the Income-tax Act, 1961 was justified. The court referenced previous decisions and concluded that the disallowance of salary payments to partners is not covered by Explanation 2 to Section 40(b). Additionally, the court confirmed that the disallowance of interest payments to partners was settled in favor of the assessee by earlier Supreme Court judgments. Therefore, the court ruled in favor of the Department, disallowing the salary payments to partners and upholding the legality of the disallowance under Section 40(b). en-us Wed, 06 Feb 2002 00:00:00 +0530 Wed, 20 May 2009 16:05:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=12616 The court held that the disallowance of salary payments to partners under Section 40(b) of the Income-tax Act, 1961 was justified. The court referenced previous decisions and concluded that the disallowance of salary payments to partners is not covered by Explanation 2 to Section 40(b). Additionally, the court confirmed that the disallowance of interest payments to partners was settled in favor of the assessee by earlier Supreme Court judgments. Therefore, the court ruled in favor of the Department, disallowing the salary payments to partners and upholding the legality of the disallowance under Section 40(b). Case-Laws Income Tax Wed, 06 Feb 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=12616