1991 (1) TMI 79

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.... C. J.-Under section 256(1) of the Income-tax Act, 1961, the Tribunal has stated the following question for our opinion : "Whether the Tribunal was in law justified in maintaining the order of the Appellate Assistant Commissioner deleting the addition of Rs. 14,088 being interest paid on the credit balance in individual accounts of the partners ?" The assessee is a registered firm. For the a....

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....or remuneration made by the firm to any partner of the firm." It was held by a Full Bench of this court in CIT v. Nitro Phosphetic Fertilizer [1988] 174 ITR 269 that the object of the provision is to prevent partners siphoning off substantial profits in the guise of salary, interest, bonus, commission, etc., and that the idea is to bring the entirety of such profits of the firm to charge. It is....