https://www.taxtmi.com/caselaws?id=759820 ITAT Surat ruled in favor of the assessee regarding addition of interest on capital contribution to partnership firm. The AO had added 12% interest on capital and reduced section 80IB deduction claims. The tribunal held that partnership deed provisions for interest on capital are enabling, not mandatory, citing precedents from Gujarat HC. Since the assessee neither claimed nor received interest from the firm, no addition was justified. The appeal was allowed and the addition deleted. en-us Thu, 26 Sep 2024 00:00:00 +0530 Tue, 08 Oct 2024 14:34:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=759820 ITAT Surat ruled in favor of the assessee regarding addition of interest on capital contribution to partnership firm. The AO had added 12% interest on capital and reduced section 80IB deduction claims. The tribunal held that partnership deed provisions for interest on capital are enabling, not mandatory, citing precedents from Gujarat HC. Since the assessee neither claimed nor received interest from the firm, no addition was justified. The appeal was allowed and the addition deleted. Case-Laws Income Tax Thu, 26 Sep 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=759820