1976 (6) TMI 71 - HC - Income Tax

Summary

The High Court of Bombay ruled that no deduction is permissible for a firm in respect of any payment of interest, salary, bonus, etc., made to its partner. The Tribunal's decision to not invoke section 154 for rectification was upheld as two reasonable views were possible regarding the treatment of interest paid on a personal loan advanced by the manager in his individual capacity. The Rule was discharged with costs. (Case citation: 1976 (6) TMI 71 - High Court Of Bombay)