https://www.taxtmi.com/caselaws?id=36277 The High Court affirmed the Tribunal's majority view, holding that the interest of Rs. 1,44,000 paid by the partner on capital borrowed for investment in the firm was an allowable deduction under Section 67(3) of the Income-tax Act, 1961. The court emphasized that the borrowed capital need not be invested as capital in the firm but should be capital borrowed by the partner for investment in the firm. The judgment concluded that the interest deduction was justified, benefiting the assessee, and directed each party to bear its own costs. en-us Thu, 07 Aug 1980 00:00:00 +0530 Sat, 20 Mar 2010 13:41:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36277 The High Court affirmed the Tribunal's majority view, holding that the interest of Rs. 1,44,000 paid by the partner on capital borrowed for investment in the firm was an allowable deduction under Section 67(3) of the Income-tax Act, 1961. The court emphasized that the borrowed capital need not be invested as capital in the firm but should be capital borrowed by the partner for investment in the firm. The judgment concluded that the interest deduction was justified, benefiting the assessee, and directed each party to bear its own costs. Case-Laws Income Tax Thu, 07 Aug 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36277