1989 (1) TMI 29

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..... or carrying on its business. To provide these funds, its two partners, R. N. Wasan and A. N. Wasan, took loans against their individual insurance policies from the Life Insurance Corporation of India. The loans so taken were thereafter credited in the accounts of these two partners. The interest payable on these loans was subsequently paid by the assessee-firm directly to the Life Insurance Corpor .....

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..... id by the assessee-firm to the Life Insurance Corporation for borrowing raised against the policies on the life of its partners did not attract the provisions of section 40(b) of the Income-tax Act, 1961 ?". A reference to the partnership deed would show that according to its terms, no interest was payable on any contributions made by the partners towards investment in the business. Further, it i .....

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