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Petitioner: COMMISSIONER OF INCOME-TAX VS Respondent: J.K. BANKERS.
Court Name: Allahabad High Court Judge(s): R. K. Gulati, R. M. Sahai Title: COMMISSIONER OF INCOME-TAX vs J.K. BANKERS. Case No.: Income-tax Application No. 33 of 1988 Date of Judgment:1989-02-27 Reported As: 1991 PTD 190 Result: Order accordingly
JUDGMENT
JUDGMENT R.K. GULATI, J.--Upon hearing the parties, we are satisfied that the following question of law does arise out of the order passed by the Income-tax Appellate Tribunal: "(1) Whether in law and on the facts of the case, the Income-tax Appellate Tribunal was justified in arriving at a conclusion that only the net amount paid by the firm to a partner after adjusting interest paid by him to the firm should be disallowed under section 40(b) of the Income-tax Act, 1961, irrespective of the fact that the amount of interest is received by him in a capacity other than the capacity in which he paid interest to the firm or' is a partner in the firm?" Accordingly, we direct the Income-tax Tribunal to draw up a statement of the case and refer the above question for the opinion of this Court. Parties shall bear their own costs.