https://www.taxtmi.com/caselaws?id=57017 The Tribunal allowed the appeal, overturning the disallowance of interest payment to LIC by the assessee-firm for the assessment year 1980-81. The Tribunal found that the interest paid to LIC, using policies as security, did not directly benefit the partners and was not considered as payment to partners under section 40(b) of the Income-tax Act. The decision highlighted the partners' inability to claim deductions under section 36 as they did not directly borrow money in this case, ultimately leading to the reversal of the disallowance. en-us Sat, 27 Feb 1982 00:00:00 +0530 Tue, 07 Dec 2010 18:33:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=57017 The Tribunal allowed the appeal, overturning the disallowance of interest payment to LIC by the assessee-firm for the assessment year 1980-81. The Tribunal found that the interest paid to LIC, using policies as security, did not directly benefit the partners and was not considered as payment to partners under section 40(b) of the Income-tax Act. The decision highlighted the partners' inability to claim deductions under section 36 as they did not directly borrow money in this case, ultimately leading to the reversal of the disallowance. Case-Laws Income Tax Sat, 27 Feb 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=57017