COMMISSIONER OF INCOME TAX Vs. JANKIDAS RAMPRATAP

JUDGEMENT

(1.) THE Tribunal has referred the following question of law arising out of its order dt. 9th April, 1986, in respect of the asst. year 1980 81 under S. 256(1) of the IT Act, 1961:

(2.) THE brief facts of the case are that Sarva Shri Asha Ram and Brijratan were partners of the assessee firm. The assessee firm had paid Rs. 9,140 as interest to the HUF, Asha Ram Subhash Chand and Brijrattan Suresh Kumar. The ITO disallowed this amount. This matter has been considered by this Court as well as by the apex Court and it has been held that the interest paid to the HUF cannot be disallowed as it is not paid to the partner but to the HUF which is a different entity from the partner. Following the decision in the case of CIT vs. Janki Dass (1992) 193 ITR 580 (Raj), we are of the view that the Tribunal was justified in deleting the addition of interest paid to Brij Mohan Suresh Kumar and Asha Ram Subhash Chandra (HUFs).