https://www.taxtmi.com/caselaws?id=26499 The Tribunal ruled in favor of the assessee, stating that the interest paid to the Hindu undivided family, who was a creditor of the firm, should not be disallowed under section 36(1)(iii) of the Income-tax Act, 1961. The Tribunal held that the interest income accrued to the partner as an individual, not to the Hindu undivided family, and therefore, the payment of interest to the partner could not be disallowed under section 40(b). The Tribunal found that the department's argument was not supported by the facts and circumstances of the case. en-us Sat, 02 Nov 1985 00:00:00 +0530 Fri, 05 Feb 2010 13:48:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=26499 The Tribunal ruled in favor of the assessee, stating that the interest paid to the Hindu undivided family, who was a creditor of the firm, should not be disallowed under section 36(1)(iii) of the Income-tax Act, 1961. The Tribunal held that the interest income accrued to the partner as an individual, not to the Hindu undivided family, and therefore, the payment of interest to the partner could not be disallowed under section 40(b). The Tribunal found that the department's argument was not supported by the facts and circumstances of the case. Case-Laws Income Tax Sat, 02 Nov 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=26499