1995 (4) TMI 34

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....f the Department, the Tribunal referred the following question for the opinion of this court under section 256(2) of the Income-tax Act, 1961 : " Whether, on the facts and in the circumstances of the case and on proper interpretation of the provisions of section 40(b) of the Income-tax Act, 1961, the Appellate Tribunal was right in holding that the interest paid to the partners by the firm shou....

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.... was only a receipt by the firm from the partners and that, therefore, there was no scope for the application of the provisions of section 40(b) of the Act. However, the Income-tax Officer rejected the assessee's contention and added back a sum of Rs. 23,240 under section 40(b) of the Act. On appeal, the Appellate Assistant Commissioner followed the earlier order of the Tribunal in the case of the....