https://www.taxtmi.com/caselaws?id=18927 Interest paid by a firm to its partners under section 40(b) was to be adjusted against interest received from those partners on overdrawn accounts, so that only the net interest payment, if any, remained subject to disallowance. The Court followed the Supreme Court's approach that the mischief of section 40(b) is not attracted to the gross payment where reciprocal interest transactions eliminate any net interest outgo to partners. The answer was therefore in favour of the assessee and against the Department. en-us Thu, 06 Apr 1995 00:00:00 +0530 Mon, 02 Nov 2009 18:14:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=18927 Interest paid by a firm to its partners under section 40(b) was to be adjusted against interest received from those partners on overdrawn accounts, so that only the net interest payment, if any, remained subject to disallowance. The Court followed the Supreme Court's approach that the mischief of section 40(b) is not attracted to the gross payment where reciprocal interest transactions eliminate any net interest outgo to partners. The answer was therefore in favour of the assessee and against the Department. Case-Laws Income Tax Thu, 06 Apr 1995 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=18927