1980 (10) TMI 121

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....ther the sum of Rs. 27,323, being the chit kasar paid to partners S/Shri V. Bijaraj, G. Nagarajan and N.G. Harinath to the extent of Rs.16,266, Rs. 10,217 and Rs. 840 respectively, is disallowable as the payments were made to partners under s. 40(b) of the Act. 2. In the ITO's order there is reference only to the addition of chit commission of Rs. 27,323. There is no reason or any discussion re....

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....e chits conducted by the firm. According to the ld. counsel, taking partners as subscribers to chit groups was more safer than taking outsiders. She relied on the Full Bench decision of the Allahabad High Court in the case of CIT vs. Ram Laxman Sugar Mills 90 ITR 73. There it is pointed out that the partners received remuneration as an authorised controller and not as partner and so it would not b....