COMMERCIAL MOTORS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, Delhi Bench "C", Delhi, has referred the following question stated to be of law and to arise out of its order dated November 23, 1979, passed in ITA No. 2156 (Delhi) of 1978-79 for the opinion of this court :

(2.) WE have heard Sri Shashi Kant Gupta, learned counsel for the assessee, and Sri A. N. Mahajan, learned standing counsel for the Commissioner-respondent.

(3.) THIS court held that the interest received from the partners was the firm's income liable to tax and that a disallowance under Section 10(4)(b) of the Indian Income-tax Act, 1922, of the excess of interest paid to a partner was justified. THIS view was repeated in Sri flam Mahadeo Prasad v. CIT [1979] 120 ITR 149 (All).