https://www.taxtmi.com/caselaws?id=24827 Interest received by a partnership firm from a partner should be adjusted against interest paid by the firm to that partner when applying section 40(b) of the Income-tax Act, 1961. On that principle, the disallowance is confined to the net interest payable after set-off, rather than the gross amount. The text also states that interest paid by the partner on his debit balance was not taxable in the firm's hands. The Tribunal's approach of allowing only the net disallowance was therefore affirmed as the correct treatment on the facts described. en-us Mon, 01 Aug 1988 00:00:00 +0530 Fri, 22 Jan 2010 16:19:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=24827 Interest received by a partnership firm from a partner should be adjusted against interest paid by the firm to that partner when applying section 40(b) of the Income-tax Act, 1961. On that principle, the disallowance is confined to the net interest payable after set-off, rather than the gross amount. The text also states that interest paid by the partner on his debit balance was not taxable in the firm's hands. The Tribunal's approach of allowing only the net disallowance was therefore affirmed as the correct treatment on the facts described. Case-Laws Income Tax Mon, 01 Aug 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=24827