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of <h1>Interest payments to partners' HUF not disallowed under Income-tax Act</h1> The High Court of Madhya Pradesh held that interest paid by an assessee-firm to partners in their Hindu undivided family capacity should not be disallowed ... Firm The High Court of Madhya Pradesh was asked to decide whether interest paid by an assessee-firm to partners in their Hindu undivided family capacity should be disallowed under section 40(b) of the Income-tax Act, 1961. The Tribunal disallowed the interest, leading to a conflict in court decisions. The case was referred to the Chief Justice for consideration by a Full Bench.
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