Remuneration to Partners as per Income Tax Act

•The Asian Marketing 2nd May 2012 Rajasthan HC

•The Tribunal finding that “The quantification of the remuneration was apparent from clause 8 of the partnership deed which provided that the remuneration would be payable as per norms fixed by the Income-tax Act. The requirement in law is that remuneration should have been authorized and the amount of remuneration shall not exceed the amount specified in s. 40(b)(v) which uses the word ‘authorised‘ and not the word ‘quantify‘” is a finding of fact which cannot be interfered with by this Court.

•The same view has been taken in Durga Dass Devki Nandan 241 CTR 180 (HP) while a contrary view has been taken in Sood Brij & Associates & Madeena Constructions 134 ITD 1 (Che)(TM)