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Remuneration to Partner out of Profit is not ‘Salary’, cannot be treated as ‘Expenditure’ for the purpose of S. 40A(3): ITAT [Read Order]

By Taxscan Team - On April 24, 2022 11:08 am

The Income Tax Appellate Tribunal (ITAT), Mumbai bench has held that the remuneration paid to Partner out of the share of profit cannot be treated as ‘salary’ to consider the same as “expenditure” for the purpose of section 40A(3) of the Income Tax Act, 1961 and therefore, such remuneration even if paid in cash exceeding…

M/s. Ratilal & Sons vs Income Tax Officer

Counsel for Appellant:   Shri Jitendra singh

Counsel for Respondent:   Shri Chandra Vijay

CITATION:   2022 TAXSCAN (ITAT) 396