1983 (1) TMI 51

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....essee which is a partnership firm has 6 partners. For the purposes of this reference, we are, however, concerned only with the fact that Ramniranjan Hiralal is a partner in his individual capacity, Narayandas Hiralal is also a partner in his individual capacity and Vasantkumar Hiralal is a partner in his capacity as karta of HUF known as " Basantkumar Hiralal ". For the assessment year 1975-76 ....

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....bsp;                       ------                                   Total        53,442....

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....d in the circumstances of the case and in law, the Tribunal was right in holding that the provisions of section 40(b) of the Income-tax Act, 1961, are not applicable to the interest payment made to Shri Vasantkumar Hiralal by the assessee-firm wherein Shri Vasantkumar Hiralal is a partner qua the partnership ? " From the question referred, it will appear that the Revenue is calling in question ....

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....tner of the firm, then for the purposes of the I.T. Act, the income received will be of the HUF; while if any coparcener including the manager has advanced personal loan, that will be his personal income and interest paid in respect of the personal loan cannot be treated as interest paid to the HUF which is a partner through the manager (See CIT v. Hansa Dyeing and Printing Works [1976] CTR (Bom) ....