Disallowance in the case of a firm, of any payment of interest to any partner.

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..... interest to any partner of the firm. 2. The Board have examined the question as to what treatment should be accorded to interest paid by the firm to a partner in the following circumstances:- (a) Where interest is paid to a HUF, and not to a partner in whatever capacity. (b) Where interest is paid to a partner whether as representing HUF or in his individual capacity. 3. In the former cas .....

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..... rtner and such payment made to him in a different capacity. This view is supported by the following High Court decisions:- 1. M/s. Ratnaswamy Nadar Vs. CIT (1965) 58 ITR 312 (Madras). 2. M/s. Girdhari Lal Ghassi Ram Vs. CIT (1968) 69 ITR 890 (Calcutta). 3. M/s. Panna Lal Girdhari Lal Vs. CIT (1971) 81 ITR 629 (Delhi). - Circular - Trade Notice - Public Notice - Instructions - Office orders .....

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