AMIT BAJAJ ADVOCATE

Delhi High Court has taken a strict view on quantification of remuneration in a partnership deed for the purpose of deduction u/s 40(b)(v) of Income Tax Act, 1961. High Court has held that quantification of remuneration in partnership deed is a must before deduction u/s 40(b)(v) is allowed. It should be noted that Himachal Pardesh High Court had taken a contrary view in an earlier judgment namely Commissioner of Income tax vs. Anil Hardware Store, [2010] 323 ITR 368 (HP) wherein it was held that quantification of remuneration in a partnership deed is not mandatory so as to claim deduction u/s 40(b)(v).