https://www.taxtmi.com/caselaws?id=5292 The SC held that section 40(b) allows netting of interest transactions between a partnership firm and partner when transactions have mutuality and relate to partnership funds. Where a partner pays interest to the firm on borrowings and receives interest from the firm, only the net excess interest paid to the partner should be disallowed under section 40(b). The substance of transactions matters over their accounting presentation in separate accounts. The HC orders were set aside and appeals allowed, with the referred question answered affirmatively. en-us Mon, 05 Feb 1990 00:00:00 +0530 Wed, 02 Jul 2025 15:55:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5292 The SC held that section 40(b) allows netting of interest transactions between a partnership firm and partner when transactions have mutuality and relate to partnership funds. Where a partner pays interest to the firm on borrowings and receives interest from the firm, only the net excess interest paid to the partner should be disallowed under section 40(b). The substance of transactions matters over their accounting presentation in separate accounts. The HC orders were set aside and appeals allowed, with the referred question answered affirmatively. Case-Laws Income Tax Mon, 05 Feb 1990 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5292