https://www.taxtmi.com/caselaws?id=14056 Interest paid to partners on their current accounts is deductible only where the partnership deed expressly authorises such payment and the statutory conditions are satisfied. A deed that refers only to interest on partners' capital contribution does not permit deduction of interest on current account balances under section 40(b)(iv), even if the firm paid the amount, recorded it in its books, and the partners reported it in their returns. Compliance depends on the deed's specific terms, not on accounting treatment or tax payment by the partners. en-us Thu, 10 Feb 2000 00:00:00 +0530 Mon, 13 Jul 2009 12:49:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=14056 Interest paid to partners on their current accounts is deductible only where the partnership deed expressly authorises such payment and the statutory conditions are satisfied. A deed that refers only to interest on partners' capital contribution does not permit deduction of interest on current account balances under section 40(b)(iv), even if the firm paid the amount, recorded it in its books, and the partners reported it in their returns. Compliance depends on the deed's specific terms, not on accounting treatment or tax payment by the partners. Case-Laws Income Tax Thu, 10 Feb 2000 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=14056