https://www.taxtmi.com/caselaws?id=424439 The Tribunal upheld the disallowance of interest paid on the debit balance of the assessee-partner's capital account in a partnership firm. It emphasized that interest deduction is governed by section 36(1)(iii) and not section 28(v) dealing with interest income. The Tribunal stressed the business purpose criterion for interest deduction and criticized the focus on income instead of asset use. Due to lack of evidence, the matter was remitted for re-examination by the Assessing Officer, allowing the appeal for statistical purposes to ensure a thorough assessment of interest deductibility in the partnership firm. en-us Tue, 28 Jun 2022 00:00:00 +0530 Wed, 29 Jun 2022 22:13:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=424439 The Tribunal upheld the disallowance of interest paid on the debit balance of the assessee-partner's capital account in a partnership firm. It emphasized that interest deduction is governed by section 36(1)(iii) and not section 28(v) dealing with interest income. The Tribunal stressed the business purpose criterion for interest deduction and criticized the focus on income instead of asset use. Due to lack of evidence, the matter was remitted for re-examination by the Assessing Officer, allowing the appeal for statistical purposes to ensure a thorough assessment of interest deductibility in the partnership firm. Case-Laws Income Tax Tue, 28 Jun 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=424439