https://www.taxtmi.com/caselaws?id=22506 Interest paid by a firm to credit balances in the individual accounts of partners representing their Hindu undivided families was held to fall within section 40(b) of the Income-tax Act, 1961, because a karta does not acquire a separate taxable personality for this purpose. The provision bars deduction of interest and similar payments to any partner to prevent profits being siphoned off in another form, and that character is not changed merely because the amount is credited in an individual account. The interest was therefore not deductible and was liable to disallowance. en-us Thu, 10 Jan 1991 00:00:00 +0530 Thu, 10 Dec 2009 17:03:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=22506 Interest paid by a firm to credit balances in the individual accounts of partners representing their Hindu undivided families was held to fall within section 40(b) of the Income-tax Act, 1961, because a karta does not acquire a separate taxable personality for this purpose. The provision bars deduction of interest and similar payments to any partner to prevent profits being siphoned off in another form, and that character is not changed merely because the amount is credited in an individual account. The interest was therefore not deductible and was liable to disallowance. Case-Laws Income Tax Thu, 10 Jan 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=22506