https://www.taxtmi.com/caselaws?id=465099 ITAT Hyderabad allowed the assessee-firm's appeals and set aside the CIT(A)'s orders that had upheld addition of income and disallowance of interest paid to partners in the hands of the firm. Relying on its own decision in the assessee's earlier assessment year and the binding AP HC precedent, the Tribunal held that the income in question was liable to be assessed as "income from property" under section 26, in the hands of the individual co-owners/partners, not in the hands of the firm. Consequently, the disallowance of interest paid to partners was deleted for all three assessment years, with a direction to the AO to redo the assessments afresh in accordance with these principles. en-us Wed, 26 Apr 2017 00:00:00 +0530 Fri, 05 Dec 2025 11:50:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=465099 ITAT Hyderabad allowed the assessee-firm's appeals and set aside the CIT(A)'s orders that had upheld addition of income and disallowance of interest paid to partners in the hands of the firm. Relying on its own decision in the assessee's earlier assessment year and the binding AP HC precedent, the Tribunal held that the income in question was liable to be assessed as "income from property" under section 26, in the hands of the individual co-owners/partners, not in the hands of the firm. Consequently, the disallowance of interest paid to partners was deleted for all three assessment years, with a direction to the AO to redo the assessments afresh in accordance with these principles. Case-Laws Income Tax Wed, 26 Apr 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=465099