1996 (1) TMI 70 - HC - Income Tax

Summary

The High Court of Madhya Pradesh ruled that partners are not entitled to exemption under section 80L of the Income-tax Act for interest earned by a firm on bank deposits held in its name. The court referred to an amendment in sub-section (3) of section 80L, which disallows such deductions for partners. The Revenue's appeal was upheld, and the deduction claim was rejected.