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

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....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 individual capacity. 3. In the former case, since the payment of inter....