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Judgment
D.V. Shylendra Kumar, J.—This appeal by the revenue u/s 260-A of the income tax Act, 1961 (for short, ''the Act''), though had been admitted to examine the following substantial question of law, is listed for hearing:
Whether the Tribunal was correct in holding that the remuneration paid to partners of Rs. 7,20,000/- was not hit by Section 40(b)(v) of the Act as the partnership deed even though did not contemplate the actual remuneration to be paid to the partners, the same permitted fixation of the remuneration which would comply with the Board Circular No. 739, dated 25-3-1996 which was applicable only to the initial years, when the said section was introduced and consequently the remuneration was allowable?
Sri K.V. Aravind, learned Standing Counsel for the appellant-Revenue and Sri N. Manohar, learned Counsel for respondent-asses see submit that having regard to the valuation of the subject-matter of this appeal, which is in a sum of Rs. 2.10 lakhs and having regard to the board circular, the appeal, though, may be disposed of as not tenable, liberty may be reserved to the appellant-Revenue for reviving the matter in the event of success of the Revenue before the Supreme Court in SLP No. 27468 of 2010 and connected matters, wherein a similar orders have been made subject-matter.
In the light of this submission, this appeal is dismissed only on the ground of valuation and maintainability, but reserving liberty to the revenue to seek for revival of the appeal in the event of success in the SLP before the Supreme Court, as noticed above.