1986 (1) TMI 14 - HC - Income Tax

Summary

The High Court of Madhya Pradesh was asked to decide whether interest paid by an assessee-firm to partners in their Hindu undivided family capacity should be disallowed under section 40(b) of the Income-tax Act, 1961. The Tribunal disallowed the interest, leading to a conflict in court decisions. The case was referred to the Chief Justice for consideration by a Full Bench.