https://www.taxtmi.com/caselaws?id=25342 The court upheld the disallowance of the deduction for the city compensatory allowance paid to the partners, ruling that it constituted remuneration falling under section 40(b) of the Income-tax Act, 1961. Despite the firm's argument that it was a legitimate business expense, the court deemed the payment as part of the partners' remuneration, affirming the Tribunal's decision. The judgment clarified that such payments, even if labeled as allowances, could be considered as remuneration under section 40(b) restrictions. en-us Mon, 03 Aug 1987 00:00:00 +0530 Thu, 28 Jan 2010 10:42:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=25342 The court upheld the disallowance of the deduction for the city compensatory allowance paid to the partners, ruling that it constituted remuneration falling under section 40(b) of the Income-tax Act, 1961. Despite the firm's argument that it was a legitimate business expense, the court deemed the payment as part of the partners' remuneration, affirming the Tribunal's decision. The judgment clarified that such payments, even if labeled as allowances, could be considered as remuneration under section 40(b) restrictions. Case-Laws Income Tax Mon, 03 Aug 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=25342