https://www.taxtmi.com/caselaws?id=29370 The High Court of Madhya Pradesh addressed a reference under the I.T. Act, 1961, regarding the disallowance of interest payment claimed by a paper manufacturing and sales firm for the assessment year 1976-77. The Court held that the disallowance of Rs. 13,020 from the interest payment claim was not justified, emphasizing that lack of explanation for not charging interest on a partner's debit balance does not automatically imply non-utilization of borrowings for business purposes. The Tribunal's decision was upheld, and no costs were awarded. en-us Mon, 06 Apr 1981 00:00:00 +0530 Fri, 12 Mar 2010 14:48:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=29370 The High Court of Madhya Pradesh addressed a reference under the I.T. Act, 1961, regarding the disallowance of interest payment claimed by a paper manufacturing and sales firm for the assessment year 1976-77. The Court held that the disallowance of Rs. 13,020 from the interest payment claim was not justified, emphasizing that lack of explanation for not charging interest on a partner's debit balance does not automatically imply non-utilization of borrowings for business purposes. The Tribunal's decision was upheld, and no costs were awarded. Case-Laws Income Tax Mon, 06 Apr 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=29370