1994 (4) TMI 7

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....has been referred to this court under section 256(1) of the Income-tax Act, 1961, by the Income-tax Appellate Tribunal, Jabalpur Bench, at the instance of the assessee : " Whether, on the facts and in the circumstances of the case, the Tribunal was correct in applying section 40(b) to the interest paid to the kartas of the three Hindu undivided families when they were partners in the firm in thei....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....by the three sons in their individual capacities. He rejected the alleged partition set up by the three sons and held that the payment of interest was made to the three sons in their individual capacity and, therefore, the amount of interest is not liable to be deducted from the income of the firm under section 40(b) of the Act. The appellate authority held that Datu Mal was a partner in his repr....