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1984 (10) TMI 22
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....sessment year in question, namely, 1970-71, the assessee-respondent, which is a registered firm, had five partners including Sri J. P. Bhartiya and Sri G. L. Bhartiya. These two persons were partners in their representative capacity as karta of their respective Hindu undivided families. During the said assessment year, the partnership had paid interest to the aforesaid two persons in the sum of Rs....
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....he provision of section 40(b) did not apply in so far as interest paid on deposits standing in the names of J. P. Bhartiya and G. L. Bhartiya is concerned ? " This application was allowed by the Tribunal which drew up I statement of the case and has referred the aforesaid question to this court for its opinion. Having heard the counsel for the parties, we are of the opinion that the aforesai....
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....ct of any payment by way of interest, salary, bonus, commission or remuneration made by the firm to any of its partners and does not make any distinction in respect of the character or capacity in which the payment is made to the partner. If a partner makes deposits in a firm of monies belonging to his Hindu undivided family and also monies belonging to him individually, in fact and in law, the pa....