1992 (8) TMI 61 - HC - Income Tax

Summary

The High Court of Allahabad ruled that interest paid to partners in their individual capacity, even if they are karta of Hindu undivided families, is not an admissible deduction under section 40(b) of the Income-tax Act, 1961. The decision was based on a Full Bench ruling in CIT v. Nitro Phosphetic Fertilizer [1988] 174 ITR 269 (All).