https://www.taxtmi.com/caselaws?id=56288 Interest credited by a partnership firm to the Hindu undivided family accounts of persons who were partners in their individual capacities was held outside the disallowance rule in section 40(b). The governing principle applied was that, for partnership purposes, only an individual can be a partner, so payments made to a partner's HUF do not attract the statutory bar. The existence of separate individual accounts for some partners did not change the character of the payments made to the HUF accounts. Accordingly, the interest was not disallowable under section 40(b), and the assessee's position was accepted. en-us Mon, 19 Dec 1983 00:00:00 +0530 Thu, 02 Dec 2010 18:03:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=56288 Interest credited by a partnership firm to the Hindu undivided family accounts of persons who were partners in their individual capacities was held outside the disallowance rule in section 40(b). The governing principle applied was that, for partnership purposes, only an individual can be a partner, so payments made to a partner's HUF do not attract the statutory bar. The existence of separate individual accounts for some partners did not change the character of the payments made to the HUF accounts. Accordingly, the interest was not disallowable under section 40(b), and the assessee's position was accepted. Case-Laws Income Tax Mon, 19 Dec 1983 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=56288