1980 (9) TMI 167

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....essment for the asst. yr. 1976-77. 2. The only ground of Deptl. appeal relates to the deletion of addition of Rs. 38,098 under the head interest account. The ITO held that the following amounts were paid to the Kartas of the HUF's as follows: (1) Shri T.R. Gupta : 12,884 (2) Shri J.J. Agrawal & Sons: 12,892 (3) Shri Indrajit Agrawal & Sons: 12,322 . . Rs. 38,....

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....22dn Jan., 1978 in ITA No. 1714 (Pat) of 1966-67 for the asst. yr. 1976-77 and also relied on 77 ITR 222 and (1977) 106 ITR 556 (AP) and reference was also made to the Board's Circular No. 997 under F.No. 201/1/76/ITA-II dt.11th Aug., 1976 in which Board had directed not to disallow interest paid to the HUF on funds invested by it in the firm in which the individual was partner. 4. The AAC held....

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....n the ground that the AAC erred in deleting the addition of Rs. 38,098. 6. The appeal was fixed for hearing on 11th Sept., 1980 when none appeared for the assessee respondent and so the ld. Deptl. Rep. was heard. 7. The ld. Deptl. Rep. fairly conceded before us that the entire amount of Rs. 38,098 was paid towards interest to the HUFs who were the creditors of the assessee firm. He also acce....