https://www.taxtmi.com/caselaws?id=17356 The High Court ruled in favor of the assessee, holding that interest paid to a partner representing a Hindu undivided family in a partnership firm, specifically as a karta, was not subject to disallowance under Section 40(b) of the Income-tax Act. The court emphasized the distinction between interest on capital and salary, affirming that interest paid for advances made in a representative capacity could be allowed as a deduction. The judgment aligned with decisions from lower authorities and the Income-tax Appellate Tribunal, referencing precedents from various High Courts to support the interpretation of Section 40(b). en-us Thu, 31 Oct 1996 00:00:00 +0530 Mon, 21 Sep 2009 17:36:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=17356 The High Court ruled in favor of the assessee, holding that interest paid to a partner representing a Hindu undivided family in a partnership firm, specifically as a karta, was not subject to disallowance under Section 40(b) of the Income-tax Act. The court emphasized the distinction between interest on capital and salary, affirming that interest paid for advances made in a representative capacity could be allowed as a deduction. The judgment aligned with decisions from lower authorities and the Income-tax Appellate Tribunal, referencing precedents from various High Courts to support the interpretation of Section 40(b). Case-Laws Income Tax Thu, 31 Oct 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=17356