https://www.taxtmi.com/highlights?id=74075 Disallowance of interest u/s. 36(1)(iii) - loan borrowed for the purpose of settling outgoing partners’ capital account - The settlement of capital account of outgoing partners becomes debt of partnership firm and discharge of said debt out of borrowed funds assumes the character of loans/funds borrowed for the purpose of business of the assessee. - interest paid on borrowed capital account is allowable deduction u/s. 36(1)(iii) of the Act. - AT en-us Wed, 10 Jan 2024 10:34:30 +0530 Wed, 10 Jan 2024 10:34:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=74075 Disallowance of interest u/s. 36(1)(iii) - loan borrowed for the purpose of settling outgoing partners’ capital account - The settlement of capital account of outgoing partners becomes debt of partnership firm and discharge of said debt out of borrowed funds assumes the character of loans/funds borrowed for the purpose of business of the assessee. - interest paid on borrowed capital account is allowable deduction u/s. 36(1)(iii) of the Act. - AT Highlights Income Tax Wed, 10 Jan 2024 10:34:30 +0530 https://www.taxtmi.com/highlights?id=74075