https://www.taxtmi.com/caselaws?id=25994 The High Court of Karnataka ruled that the disallowance of interest paid by a firm to partners under Section 40(b) of the Income-tax Act should be based on the actual net amount of interest paid to each partner, regardless of separate accounting treatment. The Court upheld the Tribunal's decision, emphasizing that the interpretation of the provision should not be influenced by the firm's accounting practices. This judgment ensures consistent application of tax laws irrespective of varying accounting methods used by different firms. en-us Tue, 15 Nov 1983 00:00:00 +0530 Tue, 02 Feb 2010 11:42:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=25994 The High Court of Karnataka ruled that the disallowance of interest paid by a firm to partners under Section 40(b) of the Income-tax Act should be based on the actual net amount of interest paid to each partner, regardless of separate accounting treatment. The Court upheld the Tribunal's decision, emphasizing that the interpretation of the provision should not be influenced by the firm's accounting practices. This judgment ensures consistent application of tax laws irrespective of varying accounting methods used by different firms. Case-Laws Income Tax Tue, 15 Nov 1983 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=25994