https://www.taxtmi.com/caselaws?id=446210 ITAT Mumbai held that interest expenditure on borrowed funds introduced as capital in partnership firm is allowable as deduction against remuneration received from the firm. The tribunal found direct nexus between borrowings and partnership investment, noting assessee's main income source was partnership remuneration and profits. Following precedent in Santosh Kumar Agrawal case, the tribunal ruled that partners are entitled to deductions including interest on borrowed capital under section 67(3). CIT(A)'s confirmation of addition was overturned as it failed to properly investigate loan genuineness. Assessee's appeal was allowed. en-us Fri, 15 Sep 2023 00:00:00 +0530 Tue, 28 Nov 2023 07:12:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=446210 ITAT Mumbai held that interest expenditure on borrowed funds introduced as capital in partnership firm is allowable as deduction against remuneration received from the firm. The tribunal found direct nexus between borrowings and partnership investment, noting assessee's main income source was partnership remuneration and profits. Following precedent in Santosh Kumar Agrawal case, the tribunal ruled that partners are entitled to deductions including interest on borrowed capital under section 67(3). CIT(A)'s confirmation of addition was overturned as it failed to properly investigate loan genuineness. Assessee's appeal was allowed. Case-Laws Income Tax Fri, 15 Sep 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=446210