https://www.taxtmi.com/caselaws?id=304342 The Tribunal partly allowed the appeal, emphasizing the need for a meticulous re-computation of interest expenditure and providing clear directions to the Assessing Officer for a fair assessment. The issues revolved around the disallowance of interest paid to the bank on a notional basis, calculation of notional interest on an arbitrary basis, disallowance of interest expenditure due to partner's negative capital balance, applicability of previous Tribunal rulings on diversion of funds, and challenge against the percentage rate applied for calculating notional interest. The Tribunal directed the Assessing Officer to recompute the disallowance based on specific guidelines, considering partners' capital accounts and day-to-day balances. en-us Thu, 19 Jun 2014 00:00:00 +0530 Thu, 22 Sep 2022 07:38:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=304342 The Tribunal partly allowed the appeal, emphasizing the need for a meticulous re-computation of interest expenditure and providing clear directions to the Assessing Officer for a fair assessment. The issues revolved around the disallowance of interest paid to the bank on a notional basis, calculation of notional interest on an arbitrary basis, disallowance of interest expenditure due to partner's negative capital balance, applicability of previous Tribunal rulings on diversion of funds, and challenge against the percentage rate applied for calculating notional interest. The Tribunal directed the Assessing Officer to recompute the disallowance based on specific guidelines, considering partners' capital accounts and day-to-day balances. Case-Laws Income Tax Thu, 19 Jun 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=304342