https://www.taxtmi.com/caselaws?id=37255 Section 40(b) of the Income-tax Act, 1961 bars deduction of any interest payment made by a firm to a partner while computing business income, and that prohibition operates notwithstanding sections 30 to 39. Interest received by the firm from its partners cannot be set off against interest paid to them, because the statute does not permit such counterbalancing treatment. The interest paid to partners therefore remains disallowable in full for the relevant assessment year, and the assessee's claim to reduce it by interest received from partners fails. en-us Fri, 24 Aug 1979 00:00:00 +0530 Sat, 27 Mar 2010 16:26:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37255 Section 40(b) of the Income-tax Act, 1961 bars deduction of any interest payment made by a firm to a partner while computing business income, and that prohibition operates notwithstanding sections 30 to 39. Interest received by the firm from its partners cannot be set off against interest paid to them, because the statute does not permit such counterbalancing treatment. The interest paid to partners therefore remains disallowable in full for the relevant assessment year, and the assessee's claim to reduce it by interest received from partners fails. Case-Laws Income Tax Fri, 24 Aug 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37255