1984 (10) TMI 66 - AT - Income Tax

Summary

The Appellate Tribunal ITAT Bangalore upheld the order of the Commissioner (Appeals) and deleted the additions of interest paid to Smt. K.L. Gangamma for the assessment years 1977-78 and 1978-79. The Tribunal found that the interest paid to her in her individual capacity could not be added back as interest paid to a partner under section 40(b) of the Income-tax Act, 1961. The Tribunal rejected the revenue's objection regarding the applicability of the amendment to section 40(b) introduced by the Taxation Laws (Amendment) Act, 1984, stating that the amendment is declaratory and retrospective in nature. Therefore, any reference of the question would be unnecessary and infructuous.