1988 (8) TMI 53

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....lowing question of law, namely: "Whether, on the facts and in the circumstances of the case, the Tribunal was legally justified in holding that interest payments on the loans advanced by Tarachand and Rameshwardas representing their respective Hindu undivided families out of the Hindu undivided family funds were not inadmissible under section 40(b) of the Income-tax Act, 1961 ?" The relevant ass....

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....for decision was considered at length by a Division Bench, of which one of us (J. S. Verma C.J.) was a member, in D. B. Income-tax References Nos. 1 of 1982 and 2 of 1982 decided on May 6, 1988, Gajanand Poonam Chand and Brothers v. CIT [1988] 174 ITR 346 (Raj). It was held therein that the Explanations inserted in clause (b) are merely declaratory. It was further held that where interest was paid....