Partners' individual interest payments upheld as deductible under Income-tax Act

The High Court of Allahabad ruled in 1989 that interest paid to partners in their individual capacity cannot be disallowed under section 40(b) of the Income-tax Act, in line with a previous Full Bench decision.

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The High Court of Allahabad in 1989 ruled against the assessee in a case involving the disallowance of interest paid to partners in their individual capacity. The court followed a previous Full Bench decision and held that the interest payment could not be disallowed under section 40(b) of the Income-tax Act.

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