https://www.taxtmi.com/caselaws?id=18662 Interest paid by a partnership firm to partners in their individual capacity was treated as outside the disallowance rule under section 40(b) of the Income-tax Act. The text explains that, after reconstitution of the firm, the recipients were partners personally rather than as karta-representatives of the earlier Hindu undivided family, so the interest was not required to be added back to the firm's income. It also states that the Explanations inserted from 1 April 1985 were regarded as clarificatory and did not alter the settled legal position retrospectively. en-us Fri, 15 Apr 1994 00:00:00 +0530 Sat, 31 Oct 2009 11:49:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=18662 Interest paid by a partnership firm to partners in their individual capacity was treated as outside the disallowance rule under section 40(b) of the Income-tax Act. The text explains that, after reconstitution of the firm, the recipients were partners personally rather than as karta-representatives of the earlier Hindu undivided family, so the interest was not required to be added back to the firm's income. It also states that the Explanations inserted from 1 April 1985 were regarded as clarificatory and did not alter the settled legal position retrospectively. Case-Laws Income Tax Fri, 15 Apr 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=18662