1993 (9) TMI 60 - HC - Income Tax

Summary

The High Court of Gujarat ruled in favor of the assessee regarding the disallowance of payments made to a partner under section 40(b) of the Income-tax Act, 1961. The court cited a Full Bench decision and held that interest paid to an individual from his personal funds cannot be disallowed if he is a partner representing a Hindu undivided family. Question No. 2 was answered in favor of the assessee. Question No. 1 was left unanswered as it was not required to be replied. The reference was disposed of with no order as to costs.