https://www.taxtmi.com/caselaws?id=21628 The High Court of Allahabad upheld the Income-tax Appellate Tribunal's decision in favor of the assessee, interpreting section 40(b) of the Income-tax Act, 1961. The Court ruled that the disallowance of interest should be based on the net amount after setting off interest paid by partners to the firm, following the principle of mutuality in interest transactions between a firm and its partners. This decision aligned with a Supreme Court ruling and rejected a contrary view from the Madras High Court. The judgment favored the assessee, answering the reference question affirmatively and against the Revenue, with no costs awarded. en-us Sat, 04 May 1991 00:00:00 +0530 Thu, 26 Nov 2009 11:35:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=21628 The High Court of Allahabad upheld the Income-tax Appellate Tribunal's decision in favor of the assessee, interpreting section 40(b) of the Income-tax Act, 1961. The Court ruled that the disallowance of interest should be based on the net amount after setting off interest paid by partners to the firm, following the principle of mutuality in interest transactions between a firm and its partners. This decision aligned with a Supreme Court ruling and rejected a contrary view from the Madras High Court. The judgment favored the assessee, answering the reference question affirmatively and against the Revenue, with no costs awarded. Case-Laws Income Tax Sat, 04 May 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=21628