https://www.taxtmi.com/caselaws?id=70178 Where a firm both pays interest to a partner and receives interest from the same partner, disallowance under section 40(b) applies only to the net interest payment after setting off the reciprocal receipt. The effective liability must be computed on a net basis rather than by ignoring interest received from the partner. On that footing, only the net interest amount is disallowed and the Revenue's challenge fails. en-us Mon, 12 Nov 1979 00:00:00 +0530 Thu, 14 Apr 2011 17:14:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=70178 Where a firm both pays interest to a partner and receives interest from the same partner, disallowance under section 40(b) applies only to the net interest payment after setting off the reciprocal receipt. The effective liability must be computed on a net basis rather than by ignoring interest received from the partner. On that footing, only the net interest amount is disallowed and the Revenue's challenge fails. Case-Laws Income Tax Mon, 12 Nov 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=70178