1977 (12) TMI 68

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....Shri P.T. Shah. It was claimed that the interest was paid to Shri P.T. Shah as Karta of HUF and not in his individual capacity and so the interest paid cannot be disallowed. The ITO following the order of the Pune Bench of the Tribunal in the case of Kumarmal Uttamchand Melani disallowed the interest paid. Before the AAC it was urged that the assessee's case is covered by the circular of the Board....

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....luded. He also pointed out that in the WT assessment of the HUF the amount outstanding to the credit of Shri P.T. Shah HUF in the books of the firm of Shah Sugandhi works, Pune was included in the total wealth. Thus he urged that the account which is in the name of Shri P.T. Shah, HUF is the HUF account but not the individual account of Shri P.T. Shah and so the interest disallowed was not justifi....

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....e AAC. But the facts in the asst. yr. 1975-76 would clearly show that the account is in this view of HUF. In fact the Department has accepted this position in the assessment of HUF for the asst. yr. 1975-76. The interest of Rs. 6,821 paid by the firm has been included therein. Similar in the Wealth-tax assessment of HUF for the asst. yr. 1975-76 the amount standing to the credit of Shri P.T. Shah ....