https://www.taxtmi.com/caselaws?id=39092 The High Court held that interest paid on capital investment by a Hindu undivided family, represented by a partner of a firm, could not be deducted under section 40(b) of the Income-tax Act. Despite attempts to segregate accounts, the Court deemed it a strategy to evade tax provisions, emphasizing that the joint family did not independently invest in the firm. The Court rejected the argument that separate accounts were opened mistakenly and upheld the Income-tax Officer's decision to disallow the deductions. The reference was decided in favor of the department, with the assessee directed to pay costs. en-us Wed, 22 Dec 1971 00:00:00 +0530 Mon, 12 Apr 2010 14:30:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39092 The High Court held that interest paid on capital investment by a Hindu undivided family, represented by a partner of a firm, could not be deducted under section 40(b) of the Income-tax Act. Despite attempts to segregate accounts, the Court deemed it a strategy to evade tax provisions, emphasizing that the joint family did not independently invest in the firm. The Court rejected the argument that separate accounts were opened mistakenly and upheld the Income-tax Officer's decision to disallow the deductions. The reference was decided in favor of the department, with the assessee directed to pay costs. Case-Laws Income Tax Wed, 22 Dec 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39092