https://www.taxtmi.com/caselaws?id=781914 ITAT Chandigarh allowed the assessee-firm's appeal and quashed the order passed u/s 263. The dispute concerned disallowance of salary paid to one partner u/s 40(b) on the ground that he was a non-working partner and that the partnership deed did not satisfy the twin conditions of s.40(b). ITAT held that there was only a minor typographical error in the deed, but salary entitlement was clearly specified against the concerned partner. Since the AO had adopted a plausible view by accepting the assessee's interpretation and no prejudice to Revenue was demonstrated, the assessment could not be branded as erroneous. en-us Mon, 29 Sep 2025 00:00:00 +0530 Mon, 23 Feb 2026 12:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=781914 ITAT Chandigarh allowed the assessee-firm's appeal and quashed the order passed u/s 263. The dispute concerned disallowance of salary paid to one partner u/s 40(b) on the ground that he was a non-working partner and that the partnership deed did not satisfy the twin conditions of s.40(b). ITAT held that there was only a minor typographical error in the deed, but salary entitlement was clearly specified against the concerned partner. Since the AO had adopted a plausible view by accepting the assessee's interpretation and no prejudice to Revenue was demonstrated, the assessment could not be branded as erroneous. Case-Laws Income Tax Mon, 29 Sep 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=781914