https://www.taxtmi.com/caselaws?id=24051 Interest paid by a partnership firm to the Life Insurance Corporation on loans taken against partners' life insurance policies was treated as interest paid to the partners where the loans were credited to their capital accounts and the borrowing was in substance for their benefit. Because the partnership deed barred interest on partners' contributions, the court applied section 40(b) of the Income-tax Act, 1961, and held the interest disallowable. The reference was answered in favour of the Revenue. en-us Mon, 23 Jan 1989 00:00:00 +0530 Sat, 16 Jan 2010 12:44:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=24051 Interest paid by a partnership firm to the Life Insurance Corporation on loans taken against partners' life insurance policies was treated as interest paid to the partners where the loans were credited to their capital accounts and the borrowing was in substance for their benefit. Because the partnership deed barred interest on partners' contributions, the court applied section 40(b) of the Income-tax Act, 1961, and held the interest disallowable. The reference was answered in favour of the Revenue. Case-Laws Income Tax Mon, 23 Jan 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=24051