https://www.taxtmi.com/caselaws?id=29471 The High Court held that interest payments made by a firm to the HUF of a partner cannot be disallowed under Section 40(b) of the Income-tax Act, 1961, as it only applies to payments made directly to a partner, not their HUF. The Court emphasized that the interest belonged to the HUF, not the individual partner. Consequently, the Court ruled in favor of the assessee, allowing the interest payments and awarding costs against the Department, including counsel's fee of Rs. 500. The jurisdictional question regarding the ITO's rectification under Section 154 remained unresolved. en-us Mon, 20 Jul 1981 00:00:00 +0530 Sat, 13 Mar 2010 11:34:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=29471 The High Court held that interest payments made by a firm to the HUF of a partner cannot be disallowed under Section 40(b) of the Income-tax Act, 1961, as it only applies to payments made directly to a partner, not their HUF. The Court emphasized that the interest belonged to the HUF, not the individual partner. Consequently, the Court ruled in favor of the assessee, allowing the interest payments and awarding costs against the Department, including counsel's fee of Rs. 500. The jurisdictional question regarding the ITO's rectification under Section 154 remained unresolved. Case-Laws Income Tax Mon, 20 Jul 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=29471