Disallowance in the case of a firm, of any payment of interest to any partner.

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....ase of a firm, of any payment of interest to any partner of the firm. 2. The Board have examined the question as to what treatment should be accorded to interest paid by the firm to a partner in the following circumstances:- (a) Where interest is paid to a HUF, and not to a partner in whatever capacity. (b) Where interest is paid to a partner whether as representing HUF or in his individu....