1979 (11) TMI 152

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....est should be added under s. 40(b) of the IT Act, 1961. The ITO noticed that the assessee firm paid interest to its partners and also received interest from the partners as under: . Interest credited to the partner Interest received by the firm on the firm on drawings. Net . Rs. Rs. Rs. K.I.Devadason 132-66 2,140 . G. Durairaj 16-11 3,045 . J. Balasingh 2,228-18 630 . . 2,376....

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....e ld. Deptl. Representative submitted that there is no provision in the IT Act which provides for adjustment of the interest paid by a partner to the firm. 3. We have heard the parties. We would uphold the CIT (A)'s finding having regard to the ratio of the Allahabad High Court decision in 24 ITR 176 cited supra. We may also add that the same view, that only one net interest payment should be dis....