https://www.taxtmi.com/caselaws?id=37665 The court ruled against the assessee, holding that interest payments made by the firm to partners acting as kartas of their HUFs are considered payments to partners and are disallowed as deductions under Section 40(b) of the Income Tax Act, 1961. The court emphasized that Section 40(b) does not differentiate the capacity in which the payment is made to the partner, stating that payments to a partner, regardless of the source of funds, fall within its purview. The Commissioner was awarded costs of Rs. 200. en-us Thu, 26 Oct 1978 00:00:00 +0530 Wed, 31 Mar 2010 12:18:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37665 The court ruled against the assessee, holding that interest payments made by the firm to partners acting as kartas of their HUFs are considered payments to partners and are disallowed as deductions under Section 40(b) of the Income Tax Act, 1961. The court emphasized that Section 40(b) does not differentiate the capacity in which the payment is made to the partner, stating that payments to a partner, regardless of the source of funds, fall within its purview. The Commissioner was awarded costs of Rs. 200. Case-Laws Income Tax Thu, 26 Oct 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37665