https://www.taxtmi.com/caselaws?id=178233 Entitlement to deduct interest was determined by whether the interest was incurred on capital borrowed and actually applied to the partnership business; because the assessee's borrowings were debited and used as capital, the interest satisfied the statutory business nexus and was allowed. By contrast, audit fees and stationery incurred for ascertaining the firm's income or preparing the individual's assessment were treated as either firm-level expenditures or personal expenses and therefore could not be claimed again by the partner; those items were disallowed. The appeal was allowed in part on these grounds. en-us Sun, 17 Nov 1963 00:00:00 +0530 Sat, 30 Jan 2016 16:51:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=178233 Entitlement to deduct interest was determined by whether the interest was incurred on capital borrowed and actually applied to the partnership business; because the assessee's borrowings were debited and used as capital, the interest satisfied the statutory business nexus and was allowed. By contrast, audit fees and stationery incurred for ascertaining the firm's income or preparing the individual's assessment were treated as either firm-level expenditures or personal expenses and therefore could not be claimed again by the partner; those items were disallowed. The appeal was allowed in part on these grounds. Case-Laws Income Tax Sun, 17 Nov 1963 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=178233