https://www.taxtmi.com/caselaws?id=290944 An assessment finding for one year does not operate as res judicata in a later year because each assessment year is a separate unit, so the earlier allowance of partners' salaries could be reconsidered. Deductibility of remuneration paid to working partners depends on a factual enquiry into whether the partners acted in a genuine dual capacity as partners and employees and whether the payments were bona fide compensation for services rendered rather than a device to reduce taxable profits. The taxing authority must examine the surrounding facts, including the link between salary, profits and capital employed, before allowing the deduction. en-us Thu, 05 Feb 1931 00:00:00 +0530 Thu, 22 Oct 2020 17:10:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=290944 An assessment finding for one year does not operate as res judicata in a later year because each assessment year is a separate unit, so the earlier allowance of partners' salaries could be reconsidered. Deductibility of remuneration paid to working partners depends on a factual enquiry into whether the partners acted in a genuine dual capacity as partners and employees and whether the payments were bona fide compensation for services rendered rather than a device to reduce taxable profits. The taxing authority must examine the surrounding facts, including the link between salary, profits and capital employed, before allowing the deduction. Case-Laws Income Tax Thu, 05 Feb 1931 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=290944