1980 (1) TMI 15 - HC - Income Tax

Summary

The High Court of Andhra Pradesh ruled in favor of the assessee regarding the disallowance of interest paid to HUF accounts under section 40(b) of the Income-tax Act, 1961. The court found that the interest was paid to the HUFs and not to the individual partners of the firm, based on the accounts and a partial partition accepted by the tax authorities. The decision was influenced by a similar case precedent.