https://www.taxtmi.com/caselaws?id=7453 Interest paid by a firm on borrowings linked to a business run through a partner was held outside deduction because section 10(4)(b) of the Income-tax Act, 1922 bars any allowance for interest paid by a firm to a partner. The language of the provision was treated as plain and not limited to payments made to a partner only in the capacity of partner; the argument that the recipient was acting in another capacity was rejected. It was also noted that the Bombay concern had become an independent business after dissolution of the Bombay branch, so its borrowings could not be treated as borrowings of the assessee-firm. The interest was therefore not deductible. en-us Wed, 14 Aug 1968 00:00:00 +0530 Fri, 20 Feb 2009 11:56:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7453 Interest paid by a firm on borrowings linked to a business run through a partner was held outside deduction because section 10(4)(b) of the Income-tax Act, 1922 bars any allowance for interest paid by a firm to a partner. The language of the provision was treated as plain and not limited to payments made to a partner only in the capacity of partner; the argument that the recipient was acting in another capacity was rejected. It was also noted that the Bombay concern had become an independent business after dissolution of the Bombay branch, so its borrowings could not be treated as borrowings of the assessee-firm. The interest was therefore not deductible. Case-Laws Income Tax Wed, 14 Aug 1968 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7453