https://www.taxtmi.com/caselaws?id=25846 The court resolved conflicting opinions on the application of section 40(b) of the Income-tax Act regarding payment of interest to a partner of a firm. It concluded that interest paid to a partner in a different capacity, such as a representative of a Hindu undivided family, is an allowable deduction under section 40(b). The court relied on the Taxation Laws (Amendment) Act, 1984, and various precedents to support its decision. This ruling aligns with the Gujarat Full Bench decision in Chhotelal & Co. v. CIT and other relevant cases, establishing the deductibility of interest paid to a partner in a different capacity. en-us Fri, 21 Nov 1986 00:00:00 +0530 Mon, 01 Feb 2010 12:49:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=25846 The court resolved conflicting opinions on the application of section 40(b) of the Income-tax Act regarding payment of interest to a partner of a firm. It concluded that interest paid to a partner in a different capacity, such as a representative of a Hindu undivided family, is an allowable deduction under section 40(b). The court relied on the Taxation Laws (Amendment) Act, 1984, and various precedents to support its decision. This ruling aligns with the Gujarat Full Bench decision in Chhotelal & Co. v. CIT and other relevant cases, establishing the deductibility of interest paid to a partner in a different capacity. Case-Laws Income Tax Fri, 21 Nov 1986 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=25846