1976 (6) TMI 71

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..... eduction is permissible in case of a firm in respect of any payment of interest, salary, bonus, commissioner or remuneration made by the firm to its partner. The manager representing the H.U.F. was a partner and he in his personal capacity had advanced a loan. In respect of the capital contributed by the H.U.F. no interest was allowed, but in respect of the personal loan advanced by the manager in .....

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..... that will be his personal income. Interest paid in respect of the personal loan cannot be treated as interest paid to the H.U.F. which is a partner through the manager and therefore it is doubtful whether section 40(b) can be made applicable to interest paid in respect of the amount advanced by the manager in his personal and individual capacity. Thus the Tribunal was right in taking the view that .....

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