https://www.taxtmi.com/caselaws?id=8244 Where the Income-tax Act treats a firm and its partners as distinct assessable entities, interest paid by a partner to the firm on personal withdrawals is real income of the firm and cannot be deducted from the partner's share of income. The doctrine of real income did not justify reducing the partner's allocated share, because the amount had accrued to and been assessed in the firm's hands before forming part of the partner's share income. A plea of impermissible double taxation also failed, as the statutory scheme permitted separate assessment of the firm and the partners. The deduction claim was rejected. en-us Tue, 08 Dec 1970 00:00:00 +0530 Mon, 06 Apr 2009 12:26:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8244 Where the Income-tax Act treats a firm and its partners as distinct assessable entities, interest paid by a partner to the firm on personal withdrawals is real income of the firm and cannot be deducted from the partner's share of income. The doctrine of real income did not justify reducing the partner's allocated share, because the amount had accrued to and been assessed in the firm's hands before forming part of the partner's share income. A plea of impermissible double taxation also failed, as the statutory scheme permitted separate assessment of the firm and the partners. The deduction claim was rejected. Case-Laws Income Tax Tue, 08 Dec 1970 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8244