https://www.taxtmi.com/caselaws?id=16192 The High Court of Madras upheld the Tribunal's decision that interest paid to partners in their individual capacity was deductible in computing the firm's profits. The Court found that the amendments to section 40(b) introduced by the Taxation Laws (Amendment) Act, 1984, were clarificatory and applied retrospectively. Therefore, the Court answered both questions of law in favor of the assessee and against the Department, allowing the firm to deduct the interest paid to individual partners. en-us Tue, 27 Jan 1998 00:00:00 +0530 Tue, 01 Sep 2009 16:43:08 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=16192 The High Court of Madras upheld the Tribunal's decision that interest paid to partners in their individual capacity was deductible in computing the firm's profits. The Court found that the amendments to section 40(b) introduced by the Taxation Laws (Amendment) Act, 1984, were clarificatory and applied retrospectively. Therefore, the Court answered both questions of law in favor of the assessee and against the Department, allowing the firm to deduct the interest paid to individual partners. Case-Laws Income Tax Tue, 27 Jan 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=16192