https://www.taxtmi.com/caselaws?id=24772 The High Court ruled in favor of the assessee, concluding that interest paid to a partner in a different capacity from their representative role in a Hindu undivided family is not disallowed under section 40(b) of the Income-tax Act, 1961. The Court clarified that the Explanations inserted by the Taxation Laws (Amendment) Act, 1984, effective from April 1, 1985, did not alter this interpretation. The Court emphasized the distinction between individuals, Hindu undivided families, and firms as separate entities, rejecting the notion that interest paid in a different capacity should be disallowed under section 40(b). en-us Fri, 06 May 1988 00:00:00 +0530 Fri, 22 Jan 2010 12:23:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=24772 The High Court ruled in favor of the assessee, concluding that interest paid to a partner in a different capacity from their representative role in a Hindu undivided family is not disallowed under section 40(b) of the Income-tax Act, 1961. The Court clarified that the Explanations inserted by the Taxation Laws (Amendment) Act, 1984, effective from April 1, 1985, did not alter this interpretation. The Court emphasized the distinction between individuals, Hindu undivided families, and firms as separate entities, rejecting the notion that interest paid in a different capacity should be disallowed under section 40(b). Case-Laws Income Tax Fri, 06 May 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=24772