https://www.taxtmi.com/caselaws?id=36031 Interest credited by a firm on capital standing in the names of the partners' Hindu undivided families was held not to fall within the section 40(b) disallowance bar on the facts stated. The Tribunal treated the capital as belonging in substance to the Hindu undivided families, noting that the partners were under no obligation to contribute capital and that the transfers followed a partial partition accepted by the tax authority. Because the interest was effectively paid to the Hindu undivided families, and not to the individual partners, the statutory prohibition was not attracted. The question was answered in the negative and in favour of the assessee. en-us Thu, 31 Jan 1980 00:00:00 +0530 Fri, 19 Mar 2010 10:22:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36031 Interest credited by a firm on capital standing in the names of the partners' Hindu undivided families was held not to fall within the section 40(b) disallowance bar on the facts stated. The Tribunal treated the capital as belonging in substance to the Hindu undivided families, noting that the partners were under no obligation to contribute capital and that the transfers followed a partial partition accepted by the tax authority. Because the interest was effectively paid to the Hindu undivided families, and not to the individual partners, the statutory prohibition was not attracted. The question was answered in the negative and in favour of the assessee. Case-Laws Income Tax Thu, 31 Jan 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36031