S. 40(b)(v) Partner's Remuneration: High Court Takes Strict View

The words “mutually agreed“ in clause of the supplementry deed is the main cause of denial as seems after reading the more part of the decision. However note in the same case reading gives the following:

Note: Contrast with M/s Durga Dass Devki Nandan vs. ITO (HP High Court) where it was held (after striking down CBDT Circular No. 739 dated 25.3.1996) that a provision in the deed that “remuneration would be as per the Act” was sufficient for s. 40(b)(v)

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CA. Mukesh Saran
M.Com.,FCA, ISA-ICAI