1985 (12) TMI 134

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.... loan advanced by Mahesh Kumar Sultania in his personal capacity, Mahesh Kumar Sultania is the Karta of the joint family and also a partner in the representative capacity in the assessee firm. The ITO under aegis of s. 40(b) disallowed the interest and added in the income of the firm. The AAC relying on the several judicial pronouncements like CIT vs. London Machinery Co. (1979) 10 CTR (All) 301 :....

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....he firm to such individual or by such individual to the firm otherwise then as partner in a representative capacity, shall not be taken into account for the purposes of this clause: Since this is an explanatory provisions, the provision will be retrospective and will apply to the year in appeal as well. Taxing into account this provision, I have no hesitation in holding that the findings of the....