From the Judgments and Orders dated 7.11.1985, 12.8.85, 6.2.85 and 24.7.86 of Madras High Court in T.C.P. Nos, 739/85, 3 13/85, 260/84 and 42/86.
A. Ramachandran and Mrs. Janaki Ramachandran for the Appellants.
CIVIL APPELLATE JURISDICTION Civil Appeal Nos.
The Tribunal in the appeals preferred by the Revenue before it, allowed the appeals and reversed the view to the companytrary taken in favour of the assessees by the first appellate authority.
In each of these cases the Income Tax Appellate Tribunal had, in substance, held that what was disallowable was the entirety of the interest paid by the firm to the partner without reference to any interest that may, in turn, have been paid by the partner to the firm.
The Judgment of the Court was delivered by VENKATACHALIAH, J. These four petitions for grant of special leave arise out of the orders of the High Court of Judicature at Madras in the companyresponding four Tax Case Petitions rejecting the assessees applications under Sec tion 256 2 of the Income tax Act, 1961 and the reference of a question of law whether the disallowance under Section 40 b of the Income Tax Act, 1961 Act of the interest paid by the firm to its partner should be the gross amount of such interest or should be companyfined to the net amount after setting off the interest, in turn, paidby the partner to the firm on his borrowings from the firm.
C. Manchanda, B.B. Ahuja and Ms. A. Subhashini for the Respondent.
1155 to 1188 NT of 1990.
