https://www.taxtmi.com/caselaws?id=296753 Interest on borrowings is deductible under section 10(2)(iii) only when the capital is borrowed for a business, profession or vocation whose profits are taxable in the assessee's own hands. Where a partner borrows money from outsiders and uses it to advance funds to unregistered firms that are separately assessed, the borrowing is not for a separately taxable business of the partner. The partner's share of profits from those firms is not taxed in his individual assessment once tax is paid by the firms, and the deduction is therefore unavailable. The court distinguished the position of a partner in a registered firm from that in an unregistered firm. en-us Tue, 19 Jan 1960 00:00:00 +0530 Thu, 05 Aug 2021 18:19:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=296753 Interest on borrowings is deductible under section 10(2)(iii) only when the capital is borrowed for a business, profession or vocation whose profits are taxable in the assessee's own hands. Where a partner borrows money from outsiders and uses it to advance funds to unregistered firms that are separately assessed, the borrowing is not for a separately taxable business of the partner. The partner's share of profits from those firms is not taxed in his individual assessment once tax is paid by the firms, and the deduction is therefore unavailable. The court distinguished the position of a partner in a registered firm from that in an unregistered firm. Case-Laws Income Tax Tue, 19 Jan 1960 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=296753