Specification of remuneration to partners in partnership deed is necessary-P&H HC

0 comments Thursday, February 2, 2012
  Punjab & Haryana High Court has held in the following case that   payment of remuneration to partners cannot be allowed, if same has not been specified, but has been left to be determined by partners at end of accounting period. The HC has held that the circular No 739 dated 25-3-1996 is clarificatory in nature and doesnot override the provisions of section 40(b) of income Tax Act, 1961. It is notable here that earlier the H.P High court in Durga Dass Devki Nandan case declared the said circular as invalid.
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