Interest paid to partners, including Hindu undivided family karta, not deductible under Income-tax Act

The High Court of Allahabad held that interest paid to partners, even if they are karta of Hindu undivided families, is not deductible under section 40(b) of the Income-tax Act, 1961. This ruling was based on a Full Bench decision in CIT v. Nitro Phosphetic Fertilizer [1988] 174 ITR 269 (All).

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The High Court of Allahabad ruled that interest paid to partners in their individual capacity, even if they are karta of Hindu undivided families, is not an admissible deduction under section 40(b) of the Income-tax Act, 1961. The decision was based on a Full Bench ruling in CIT v. Nitro Phosphetic Fertilizer [1988] 174 ITR 269 (All).

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