https://www.taxtmi.com/caselaws?id=403677 The Tribunal allowed the assessee's appeal, overturning the disallowance of interest expenditure claimed as business expense. Despite the partnership firm's losses and absence of interest income, the Tribunal held that partners are entitled to deductions for expenses related to earning income from the firm. The interest expense, incurred due to borrowing for capital investment in the firm, was deemed legitimate under sections 36(1)(iii) and 37 of the Income Tax Act. Consequently, the Tribunal directed the Assessing Officer to allow the deduction, emphasizing partners' entitlement to claim such expenses. en-us Thu, 28 Jan 2021 00:00:00 +0530 Fri, 05 Feb 2021 07:04:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=403677 The Tribunal allowed the assessee's appeal, overturning the disallowance of interest expenditure claimed as business expense. Despite the partnership firm's losses and absence of interest income, the Tribunal held that partners are entitled to deductions for expenses related to earning income from the firm. The interest expense, incurred due to borrowing for capital investment in the firm, was deemed legitimate under sections 36(1)(iii) and 37 of the Income Tax Act. Consequently, the Tribunal directed the Assessing Officer to allow the deduction, emphasizing partners' entitlement to claim such expenses. Case-Laws Income Tax Thu, 28 Jan 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=403677