TMI Blog1982 (1) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... 76 under s. 40(b) of the IT Act, 1961 was wrongly made and confirmed. The assessment year involved is 1979-80 and the order under appeal is dt. 29th April, 1980 passed by the AAC, Patiala Range, Patiala. 2. The ITO disallowed the assessee's claim of Rs. 440 as litigation expenses incurred for evicting a tenant by observing that on being successful it would get a benefit of enduring nature. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... July, 1981 in ITA Nos. 1011 1012/Chd/1979 in the case of M/s. Ganesh Factory, Rajpura: "5. On the question of s. 40(B) disallowance, we have come across similar cases and have taken a consistent approach that when Karta of a HUF is a partner in a firm and has also an individual account with the firm, interest paid on the account is to be considered as paid to the partner because in the consti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nership law and income-tax law. It is, therefore, not possible to proceed on the footing that an UF HUFHHUF is a partner in a firm for the purpose of S. 40(B) of the Act. It was further held that in order to disallow a payment of interest by the firm under s. 40(b) of the Act, the test to be applied is as to whether the interest is paid to a partner. If the creditor of the firm is not the partner ..... X X X X Extracts X X X X X X X X Extracts X X X X
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