Allahabad High Court
Commissioner Of Income-Tax vs U.P. Iron Stores on 6 July, 1989
Equivalent citations: [1989]180ITR296(ALL)
JUDGMENT
1. The Commissioner of Income-tax has referred the following question under Section 256(1) of the Income-tax Act, 1961, to the High Court:
"Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the interest, amounting to Rs. 10,081 paid to Shri Manohar Lal Agarwal and Shri Mangat Ram Agarwal in their individual capacity could not be disallowed under section, 40(b) of the Income-tax Act when they were partners in the assessee-firm on behalf of their respective Hindu undivided families?"
2. This question has been decided by a Full Bench of this court in CIT v. Nitro Phosphetic Fertilizer [1988] 174 ITR 209 (All). We follow the Full Bench decision and answer the question in the negative in favour of the Department, and against the assessee.