https://www.taxtmi.com/caselaws?id=27161 The High Court of Gujarat held that interest paid by an assessee-firm to a partner in his individual capacity could not be disallowed under Section 40(b) of the Income-tax Act, 1961. Relying on the Full Bench's decision in a prior case, the court ruled in favor of the assessee, rejecting the Revenue's argument. The court emphasized that the Supreme Court's refusal to grant special leave does not automatically confirm the lower court's decision, highlighting the need for detailed consideration before concluding a decision stands overruled. The judgment favored the assessee and was delivered by B. K. Mehta J., with no order as to costs. en-us Wed, 26 Jun 1985 00:00:00 +0530 Thu, 11 Feb 2010 12:17:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=27161 The High Court of Gujarat held that interest paid by an assessee-firm to a partner in his individual capacity could not be disallowed under Section 40(b) of the Income-tax Act, 1961. Relying on the Full Bench's decision in a prior case, the court ruled in favor of the assessee, rejecting the Revenue's argument. The court emphasized that the Supreme Court's refusal to grant special leave does not automatically confirm the lower court's decision, highlighting the need for detailed consideration before concluding a decision stands overruled. The judgment favored the assessee and was delivered by B. K. Mehta J., with no order as to costs. Case-Laws Income Tax Wed, 26 Jun 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=27161