1980 (7) TMI 145 - AT - Income Tax

Summary

The Appellate Tribunal ITAT Jaipur ruled that interest paid to Hindu undivided families of partners in a firm should not be added back in the firm's income under section 40(b) of the Income Tax Act. The decision was based on the distinction between individual partners and their HUFs, following the Andhra Pradesh High Court precedent. The Departmental appeals were dismissed.