whether in a case where a firm has received as well as paid interest to a partner, it is the gross interest paid by the firm to the partner or the net interest (i.e. the gross interest paid by the firm to the partner minus the interest paid by the partner to the firm) will be added back under the provisions of section 40(b) of the Income-tax Act, 1961, in computing the income of the firm.

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Full Text of the Document

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....ar No. 882/CBDT Dated:- 25-9-1975 Order-Instruction Dated:- 25-9-1975 Order-Instruction<br>Income Tax<br>INSTRUCTION NO. 882/CBDT &nbsp;Dated : September 25, 1975 Section(s) Referred: 40(b) Statute: Income - Tax Act, 1961 A reference is invited to Board's Circular No. 33-D (XXV-24) of 1965 (F.No. 9/55/64-ITA-I dated 8-11-1965) by which Board's Circular No. 55 of 1941 on the above subj....