https://www.taxtmi.com/caselaws?id=26759 The court held that deduction of interest paid on capital borrowed for investment in a firm under section 67(3) of the Income-tax Act, 1961 is contingent upon the existence of share income from the partnership. In this case, as the firm had not commenced business and the assessee did not receive any share income, the court upheld the decision to disallow the deduction of interest. The court distinguished previous decisions and emphasized the necessity of share income to justify the claim for deduction of interest on borrowed capital. en-us Mon, 08 Apr 1985 00:00:00 +0530 Mon, 08 Feb 2010 12:58:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=26759 The court held that deduction of interest paid on capital borrowed for investment in a firm under section 67(3) of the Income-tax Act, 1961 is contingent upon the existence of share income from the partnership. In this case, as the firm had not commenced business and the assessee did not receive any share income, the court upheld the decision to disallow the deduction of interest. The court distinguished previous decisions and emphasized the necessity of share income to justify the claim for deduction of interest on borrowed capital. Case-Laws Income Tax Mon, 08 Apr 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=26759