Interest on Partner Capital Allowed as Deduction to Avoid Double Taxation u/s 40(b) of Income Tax Act.

Interest on Partner Capital Allowed as Deduction to Avoid Double Taxation u/s 40(b) of Income Tax Act. https://www.taxtmi.com/highlights?id=70601 Interest on capital paid to the partner - payment of interest by the two partnership firms towards use of partners’ capital - Expenditure incurred on account of commercial expediency or not? - Since the amount has been taxed in the hands of partners u/s 28(v) of the Act same to be allowed in the hands of the assessee u/s 40(b) of the Act, otherwise it amounts to double taxation - AO directed to allow the deduction to the extent of limit prescribed in section 40(b) - AT en-us Tue, 27 Jun 2023 14:37:31 +0530 Tue, 27 Jun 2023 15:40:25 +0530 TaxTMI RSS Generator Interest on Partner Capital Allowed as Deduction to Avoid Double Taxation u/s 40(b) of Income Tax Act. https://www.taxtmi.com/highlights?id=70601 Interest on capital paid to the partner - payment of interest by the two partnership firms towards use of partners’ capital - Expenditure incurred on account of commercial expediency or not? - Since the amount has been taxed in the hands of partners u/s 28(v) of the Act same to be allowed in the hands of the assessee u/s 40(b) of the Act, otherwise it amounts to double taxation - AO directed to allow the deduction to the extent of limit prescribed in section 40(b) - AT Highlights Income Tax Tue, 27 Jun 2023 14:37:31 +0530 https://www.taxtmi.com/highlights?id=70601