https://www.taxtmi.com/caselaws?id=56987 The Tribunal upheld the CIT(A)'s decision to disallow the salary paid to partners in their individual capacity under section 40(b) of the IT Act. The Tribunal emphasized that partners cannot be considered employees of the firm and that their remuneration is a share of profits, not a salary. Referring to relevant case law, including judgments in N. T. R. Estate v. CIT and others, the Tribunal concluded that the salary was based on personal skill and efforts, not as representatives of their Hindu Undivided Family (HUF). The Tribunal dismissed the revenue's appeal, affirming the disallowance of the partners' salary. en-us Tue, 22 Sep 1998 00:00:00 +0530 Tue, 07 Dec 2010 16:40:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=56987 The Tribunal upheld the CIT(A)'s decision to disallow the salary paid to partners in their individual capacity under section 40(b) of the IT Act. The Tribunal emphasized that partners cannot be considered employees of the firm and that their remuneration is a share of profits, not a salary. Referring to relevant case law, including judgments in N. T. R. Estate v. CIT and others, the Tribunal concluded that the salary was based on personal skill and efforts, not as representatives of their Hindu Undivided Family (HUF). The Tribunal dismissed the revenue's appeal, affirming the disallowance of the partners' salary. Case-Laws Income Tax Tue, 22 Sep 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=56987