https://www.taxtmi.com/caselaws?id=60804 Salary paid by a firm to a partner is treated under section 67(1)(b) as part of the partner's share in the firm's income, because the firm cannot create a contract of employment with its own partner. The receipt therefore retains the character of business income of the firm and is not assessable under the head "Salaries" under section 14. As a result, the standard deduction under section 16(i) is unavailable in respect of that payment, and the disallowance of the deduction is upheld. en-us Wed, 19 Jan 1983 00:00:00 +0530 Sat, 08 Jan 2011 11:30:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=60804 Salary paid by a firm to a partner is treated under section 67(1)(b) as part of the partner's share in the firm's income, because the firm cannot create a contract of employment with its own partner. The receipt therefore retains the character of business income of the firm and is not assessable under the head "Salaries" under section 14. As a result, the standard deduction under section 16(i) is unavailable in respect of that payment, and the disallowance of the deduction is upheld. Case-Laws Income Tax Wed, 19 Jan 1983 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=60804