DURGA DASS DEVKI NANDAN Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) This Income-tax Appeal was admitted on the following questions of law:

(2.) The main question which arises for consideration is whether as per the partnership deed in question, any remuneration was fixed for payment to the partners of the Firm. Relevant portion of Section 40(b)(v)(1) of the Income Tax Act, 1961 (hereinafter referred to as "the Act") reads as follows:

(3.) This provision of law was the subject matter of a number of conflicting decisions and, therefore, Central Board of Direct Taxes (CBDT) issued circular No. 739, dated 25.3.1996, wherein the Board clarified in para 4 of the circular as follows: