Search Results For: 40(b)(ii)

Amounts not deductible – Working partner – Remuneration – Remuneration paid to HUF

QUERY: In case when both the HUF and his Karta is a partner of same partnership firm, remuneration paid to HUF will be allowed or not?
ANSWER: Click here to read the full answer of the expert

In V. D. Dhanwatey v. CIT [68 ITR 365 (SC)], V. D. D. as a member of a bigger HUF was looking after the family business of lithography and printing and was remunerated for the same between 1930 and 1939. After partition the business was converted into partnership but VDD continued to be with one eighth share on behalf of his smaller HUF which had contributed proportionate capital. Under clause 7 of the partnership deed the general management and supervision of the business was to be in the hands of VDD, who under clause 16, was to be paid remuneration.

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