Taxability of Partner's Remuneration and Interest in Firm with No Business Income u/s 40B Explained.

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....Taxability of the remuneration received from the partnership firm and interest on capital contribution made by the partner of the firm in the absence of any business income in the hands of the firm - The reasoning of the CIT(A) that there was no disallowance made by the Assessing Officer u/s.40B and, therefore, the question of applicability of proviso does not arise, in our considered opinion, is unreasonable. The question of disallowance by the Assessing Officer arises only in the event of claim for allowance by the firm. When there was no claim made by the assessee firm u/s. 40B, the question of disallowance does not arise. - AT....