https://www.taxtmi.com/caselaws?id=469892 Interest paid to partners under section 40(b)(iv) is not subject to a prior recomputation of firm profits by forcing depreciation that was not claimed in the accounts. The statutory scheme distinguishes partner remuneration, which is expressly linked to book profit, from partner interest, for which no comparable mandate exists. On that basis, depreciation could not be insisted on merely to recast the partners' capital accounts or reduce the allowable interest, and the accounts could not be rejected on that ground. en-us Tue, 24 Apr 2012 00:00:00 +0530 Wed, 08 Jul 2026 16:53:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=469892 Interest paid to partners under section 40(b)(iv) is not subject to a prior recomputation of firm profits by forcing depreciation that was not claimed in the accounts. The statutory scheme distinguishes partner remuneration, which is expressly linked to book profit, from partner interest, for which no comparable mandate exists. On that basis, depreciation could not be insisted on merely to recast the partners' capital accounts or reduce the allowable interest, and the accounts could not be rejected on that ground. Case-Laws Income Tax Tue, 24 Apr 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=469892