https://www.taxtmi.com/caselaws?id=70013 The appellate tribunal upheld the decision of the Commissioner of Income Tax (Appeals) and dismissed the departmental appeal. It ruled that the disallowance of interest paid by the assessee firm to other firms with common partners was not justified under Section 40(b) of the Income Tax Act. The tribunal emphasized the legal principles of partnerships and the distinct entities of the firms involved, stating that Section 40(b) only applies when interest or remuneration is paid by a firm to its partners as per the partnership agreement. en-us Mon, 30 Sep 1991 00:00:00 +0530 Wed, 13 Apr 2011 14:18:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=70013 The appellate tribunal upheld the decision of the Commissioner of Income Tax (Appeals) and dismissed the departmental appeal. It ruled that the disallowance of interest paid by the assessee firm to other firms with common partners was not justified under Section 40(b) of the Income Tax Act. The tribunal emphasized the legal principles of partnerships and the distinct entities of the firms involved, stating that Section 40(b) only applies when interest or remuneration is paid by a firm to its partners as per the partnership agreement. Case-Laws Income Tax Mon, 30 Sep 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=70013