https://www.taxtmi.com/caselaws?id=773027 Interest paid to partners was allowable where the partnership deed authorised the payment, the amount was actually paid during the year under the cash system of accounting, and the rate stayed within the statutory ceiling. The allowance under the Income-tax Act depended on deed-based authorisation and compliance with the prescribed limit, not on proof that the partners' capital was exclusively deployed for business purposes. A disallowance made only because the capital was not shown to be used solely in the business was therefore unsustainable, and the deduction was allowed. en-us Fri, 13 Jun 2025 00:00:00 +0530 Tue, 17 Jun 2025 07:57:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=773027 Interest paid to partners was allowable where the partnership deed authorised the payment, the amount was actually paid during the year under the cash system of accounting, and the rate stayed within the statutory ceiling. The allowance under the Income-tax Act depended on deed-based authorisation and compliance with the prescribed limit, not on proof that the partners' capital was exclusively deployed for business purposes. A disallowance made only because the capital was not shown to be used solely in the business was therefore unsustainable, and the deduction was allowed. Case-Laws Income Tax Fri, 13 Jun 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=773027