https://www.taxtmi.com/caselaws?id=24115 The court held that under Section 40(b) of the Income-tax Act, 1961, only the net amount paid by a firm to its partners, after adjusting the interest paid by partners to the firm, could be disallowed. The court referred to previous decisions and the amendments introduced by the Taxation Laws (Amendment) Act, 1984, to support its decision. It emphasized the binding nature of circulars issued by the Central Board of Direct Taxes, ruling in favor of the assessee and deleting the addition of interest paid to partners. en-us Thu, 04 May 1989 00:00:00 +0530 Fri, 16 Jun 2017 13:12:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=24115 The court held that under Section 40(b) of the Income-tax Act, 1961, only the net amount paid by a firm to its partners, after adjusting the interest paid by partners to the firm, could be disallowed. The court referred to previous decisions and the amendments introduced by the Taxation Laws (Amendment) Act, 1984, to support its decision. It emphasized the binding nature of circulars issued by the Central Board of Direct Taxes, ruling in favor of the assessee and deleting the addition of interest paid to partners. Case-Laws Income Tax Thu, 04 May 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=24115