Commissioner Of Income-Tax vs Gopal Bansilal Inani

The Supreme Court addressed the refusal of the Andhra Pradesh High Court to direct a reference under Section 256(2) of the Income-tax Act, 1961, regarding the deductibility of interest payments made to coparceners by a Hindu undivided family. The Court set aside the High Court's judgment, treating the question as deemed referred for consideration, and ultimately ruled that the Income-tax Appellate Tribunal was not justified in allowing such deductions, aligning with precedents in CIT v. Venugopal Inani and ITO v. Smt. N.K. Sarada Thampatty. The appeal was decided in favor of the Revenue, with no order as to costs.