Allowable remuneration to partner ?

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CA Abhishek Singh (Querist)
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27 December 2011 partnership deed contains the following clause. whether it is valid ?

''working partner will be provided with remuneration as per provisions of section 40(b) of the income tax act 1961"

reply with recent case law would be highly appreciated.

thanks in advance

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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27 December 2011 The remuneration clause is not drafted properly which may lead to disallowance of remuneration, w.e.f assessment year 1997-98 and onwards, in view of the CBDT Circular 739 dated 25/03/2006.

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