1979 (11) TMI 152 - AT - Income Tax

Summary

The Revenue's appeal was dismissed by the ITAT MADRAS-C. The CIT (A) erred in holding that only the net interest should be added under s. 40(b) of the IT Act, 1961. The ITO added back the gross amount of interest without considering interest received from the same partners. The CIT (A) accepted the assessee's contention that only the net interest payment of Rs. 1,598 should be disallowed under s. 40(b) for one partner. The Tribunal upheld the CIT (A)'s finding based on relevant case law. The appeal by the Revenue failed and was dismissed.