https://www.taxtmi.com/caselaws?id=13796 The court quashed Circular No. 737 dated February 23, 1996, due to its inconsistency with the retrospective operation of the proviso to sub-section (2) of section 44AD of the Income-tax Act, 1961. The judgment clarified that deductions for salary and interest to partners of a firm were permissible under the amended provisions, directing reassessment of the petitioner in compliance with the law. This decision aimed to resolve confusion arising from conflicting circulars and ensure adherence to the correct interpretation of section 44AD. en-us Fri, 09 May 1997 00:00:00 +0530 Sat, 04 Jul 2009 17:49:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=13796 The court quashed Circular No. 737 dated February 23, 1996, due to its inconsistency with the retrospective operation of the proviso to sub-section (2) of section 44AD of the Income-tax Act, 1961. The judgment clarified that deductions for salary and interest to partners of a firm were permissible under the amended provisions, directing reassessment of the petitioner in compliance with the law. This decision aimed to resolve confusion arising from conflicting circulars and ensure adherence to the correct interpretation of section 44AD. Case-Laws Income Tax Fri, 09 May 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=13796