1991 (1) TMI 79 - HC - Income Tax

Summary

The High Court of Allahabad ruled against the assessee in a case involving deduction of interest paid on credit balances in partners' individual accounts. The court held that such payments are not deductible under section 40(b) of the Income-tax Act, 1961, to prevent partners from siphoning off profits. The decision was based on a previous ruling and the question was answered in favor of the Department.