https://www.taxtmi.com/caselaws?id=769313 Bombay HC upheld the disallowance of interest paid to beneficiaries under Section 40(b) of the Income Tax Act, 1961. The appellant trust was classified as an Association of Persons (AOP) based on Supreme Court precedent requiring voluntary pooling of resources for common purpose generating income. The assessee had declared AOP status in returns without attempting correction. The AO, CIT(A), and ITAT findings were based on meticulous evidence appreciation and were not perverse. The court confirmed that beneficiaries voluntarily pooled money knowing funds would be used for business projects generating profits for the trust and themselves. en-us Thu, 03 Apr 2025 00:00:00 +0530 Wed, 23 Apr 2025 09:09:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=769313 Bombay HC upheld the disallowance of interest paid to beneficiaries under Section 40(b) of the Income Tax Act, 1961. The appellant trust was classified as an Association of Persons (AOP) based on Supreme Court precedent requiring voluntary pooling of resources for common purpose generating income. The assessee had declared AOP status in returns without attempting correction. The AO, CIT(A), and ITAT findings were based on meticulous evidence appreciation and were not perverse. The court confirmed that beneficiaries voluntarily pooled money knowing funds would be used for business projects generating profits for the trust and themselves. Case-Laws Income Tax Thu, 03 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=769313