1986 (1) TMI 14

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....(hereinafter referred to as " the Act "), the Income-tax Appellate Tribunal, Indore Bench, has referred the following question of law to this court for its opinion: " Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was correct in holding that the interest paid by the assessee-firm to the Hindu undivided family Prakash Chandra Sobhagmal and Arunkumar....

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....enue thereupon preferred a second appeal before the Tribunal. The Tribunal held that interest paid by the assessee-firm to its partners, Prakashchandra Sobhagmal and Arunkumar Sobhagmal, was rightly disallowed by the Income-tax Officer under section 40(b) of the Act. The Tribunal accordingly allowed the appeal. Hence, at the instance of the assessee, the Tribunal has referred the aforesaid questio....