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Whether 40A(2) specified person ..??

Saurabh Tiwari (practising ca) (26 Points)

28 October 2007

Whether 40A(2) specified person can be applied on Section 40B even if calculated by applying correct amount of remuneration

Ex-According to section 40B if remuneration comes to Rs100000 and it is within the limit of 40B then can AO disallowed the expenses because of parter who can be a specified person..?.....

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5 Replies

Maheshkumar Joshi (Student) (26 Points)
Replied 29 October 2007

Can an articled assisstant appear before income tax authorities for hearing of case???

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Late CA Sampat Jain (Chartered Accountant) (4772 Points)
Replied 29 October 2007

In my opinion no .The legislature in its own wisdom has provided the limits to remunration to partner , which they considered reasonable.Now the wisdom of AO can not be assumed to be more than legislature . AO , in his capacity as AO is creature of law . Moreover , when specific provision is there for disallowance of remunration to partner , the general provisin should not be aplied,

CA. Dashrath Maheshwari (TaXpert) (15103 Points)
Replied 29 October 2007

articled assisstant can't appear before income tax authorities

Vijay K. Agrawal (Service) (608 Points)
Replied 29 October 2007

there is no question of opinion. it was provided in law how to calculate remuneration. AO can not disallowed.sec. 40b itself is restricting the income or remuneration given to partners.

Ca. Alok Gupta (CA Job) (172 Points)
Replied 01 November 2007

AO CAN DISALLOWED THE REMUNARATION U/S 40(b) IF THEY HAVE SUFFICIENT GROUND FOR DISALLOWED THAT EXPENDITURE.WHETHER THAT EXPENDITURE WITH IN LIMIT OR NOT