https://www.taxtmi.com/caselaws?id=68994 Interest credited by a firm to the account of a deceased partner's estate was examined under section 40(b) of the Income-tax Act, 1961. On the death of the intestate partner, succession vested immediately in the Class I heirs, who took definite one-fifth shares as tenants-in-common under the Hindu Succession Act; their continued joint enjoyment of an undivided estate did not make them a body of individuals or an association of persons. As each heir had a defined share, the interest relatable to the partner-heirs was treated as interest payable to partners and attracted section 40(b). The four-fifths disallowance was upheld. en-us Mon, 22 Jun 1987 00:00:00 +0530 Mon, 04 Apr 2011 13:54:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=68994 Interest credited by a firm to the account of a deceased partner's estate was examined under section 40(b) of the Income-tax Act, 1961. On the death of the intestate partner, succession vested immediately in the Class I heirs, who took definite one-fifth shares as tenants-in-common under the Hindu Succession Act; their continued joint enjoyment of an undivided estate did not make them a body of individuals or an association of persons. As each heir had a defined share, the interest relatable to the partner-heirs was treated as interest payable to partners and attracted section 40(b). The four-fifths disallowance was upheld. Case-Laws Income Tax Mon, 22 Jun 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=68994