COMMISSIONER OF INCOME-TAX Vs. JANKIDAS RAMPRATAP

JUDGEMENT

(1.) The Income-tax Appellate Tribunal has referred the following question of law arising out of its order dated April 9, 198G, in respect of the assessment year 1980-81 under Section 256(1) of the Income-tax 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 Hindu undivided families, Asha Ram Subhash Chand and Brijrattan Suresh Kumar. The Income-tax Officer 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 Hindu undivided family cannot be disallowed as it is not paid to the partner but to the Hindu undivided family which is a different entity from the partner. Following the decision in the case of CIT v. Janki Dass [1992] 193 ITR 580 (Raj), we are of the view that the Income-tax Appellate Tribunal was justified in deleting the addition of interest paid to Brij Mohan Suresh Kumar and Asha Ram Subhash Chandra (HUFs).

(3.) Consequently, the reference is answered in favour of the assessee and against the Revenue. No order as to costs.