https://www.taxtmi.com/caselaws?id=24591 Interest paid by a firm to partners acting as kartas of their Hindu undivided families was held inadmissible under section 40(b) because the partners received the payment in the same representative capacity in which they were partners. The exclusion in section 40(b) applies where interest is paid to a partner as partner; it does not apply only when the same person is paid in a genuinely distinct personal capacity, such as an individual lender. On the facts, no separate capacity existed, so the interest was not deductible and the Revenue's position prevailed. en-us Mon, 08 Aug 1988 00:00:00 +0530 Thu, 21 Jan 2010 10:45:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=24591 Interest paid by a firm to partners acting as kartas of their Hindu undivided families was held inadmissible under section 40(b) because the partners received the payment in the same representative capacity in which they were partners. The exclusion in section 40(b) applies where interest is paid to a partner as partner; it does not apply only when the same person is paid in a genuinely distinct personal capacity, such as an individual lender. On the facts, no separate capacity existed, so the interest was not deductible and the Revenue's position prevailed. Case-Laws Income Tax Mon, 08 Aug 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=24591