1995 (4) TMI 34 - HC - Income Tax

Summary

The High Court of Madras ruled in favor of the assessee, a partnership firm in a money-lending business, regarding the deduction of interest paid to partners under section 40(b) of the Income-tax Act, 1961. The court upheld the decision of the Appellate Tribunal based on the Supreme Court precedent in Keshavji Ravji and Co. v. CIT [1990] 183 ITR 1. The interest payments made by the firm to its partners were not required to be added back for assessment purposes.