https://www.taxtmi.com/caselaws?id=447298 The Madras HC dismissed a revision petition u/s 264 where a partnership firm sought revision after interest payments exceeding 12% to a partner were disallowed. The court held that under the Income Tax Act, firms and individual partners are separate entities. Disallowance of expenditure for one entity does not entitle the recipient entity to claim deduction of the disallowed amount. Since the assessee actually received the interest and obtained corresponding benefit, the petition lacked merit and was rejected. en-us Tue, 31 Oct 2023 00:00:00 +0530 Fri, 22 Dec 2023 17:32:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=447298 The Madras HC dismissed a revision petition u/s 264 where a partnership firm sought revision after interest payments exceeding 12% to a partner were disallowed. The court held that under the Income Tax Act, firms and individual partners are separate entities. Disallowance of expenditure for one entity does not entitle the recipient entity to claim deduction of the disallowed amount. Since the assessee actually received the interest and obtained corresponding benefit, the petition lacked merit and was rejected. Case-Laws Income Tax Tue, 31 Oct 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=447298