2000 (2) TMI 25 - HC - Income Tax

Summary

The High Court of Kerala dismissed the petitions related to the deduction of interest under section 40(b)(iv) of the Income-tax Act, 1961 for the assessment year 1993-94. The court ruled that the partnership deed must authorize payment of interest on the current account for it to be allowed as a deduction. The petitioners' claim was rejected as there was no provision in the partnership deed enabling such payment. The court found no merit in the original petitions and dismissed them.