https://www.taxtmi.com/caselaws?id=5333 Interest paid on a debit balance taken over by a successor firm from an erstwhile Hindu undivided family was allowable as a deduction under section 36(1)(iii) of the Income-tax Act, 1922, where the Tribunal reasonably inferred on the surrounding facts that the liability formed part of the consideration for acquiring the business goodwill. The absence of book entries did not, by itself, justify disturbing that finding. The firm's deduction claim was not defeated by the personal liability of the Hindu undivided family members, because the relevant question was the assessee-firm's own entitlement to deduction. The deduction was therefore allowed in favour of the assessee. en-us Fri, 12 Jul 1991 00:00:00 +0530 Sun, 23 Nov 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5333 Interest paid on a debit balance taken over by a successor firm from an erstwhile Hindu undivided family was allowable as a deduction under section 36(1)(iii) of the Income-tax Act, 1922, where the Tribunal reasonably inferred on the surrounding facts that the liability formed part of the consideration for acquiring the business goodwill. The absence of book entries did not, by itself, justify disturbing that finding. The firm's deduction claim was not defeated by the personal liability of the Hindu undivided family members, because the relevant question was the assessee-firm's own entitlement to deduction. The deduction was therefore allowed in favour of the assessee. Case-Laws Income Tax Fri, 12 Jul 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5333