https://www.taxtmi.com/caselaws?id=260289 The High Court dismissed the appeal challenging the disallowance of interest deduction under Section 36(1)(iii) of the Income-tax Act, 1961. The court upheld the decision that the borrowing of Rs. 75,00,000 by the partnership firm was not for business purposes but for settling accounts with retiring partners. The court ruled that the borrowing did not meet the conditions for a business purpose deduction, as the payment was for partner share transfer and not a liability of the partnership firm. The appeal lacked merit, and the judgment favored the revenue, denying the deduction. en-us Mon, 17 Nov 2014 00:00:00 +0530 Sat, 06 Jun 2015 15:40:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=260289 The High Court dismissed the appeal challenging the disallowance of interest deduction under Section 36(1)(iii) of the Income-tax Act, 1961. The court upheld the decision that the borrowing of Rs. 75,00,000 by the partnership firm was not for business purposes but for settling accounts with retiring partners. The court ruled that the borrowing did not meet the conditions for a business purpose deduction, as the payment was for partner share transfer and not a liability of the partnership firm. The appeal lacked merit, and the judgment favored the revenue, denying the deduction. Case-Laws Income Tax Mon, 17 Nov 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=260289