https://www.taxtmi.com/caselaws?id=795820 Interest on partners' running capital accounts may be allowable where the partnership deed authorises it and daily running credit balances, rather than opening or closing debit balances, establish the accrued liability. Under mercantile accounting, year-end credit entries do not by themselves make the expense fictitious when supporting computations are unrebutted. Interest credited to a lender is not disallowable under section 40(a)(ia) where tax deduction and deposit are established, the recipient has recognised the income, and no separate banking-channel transfer requirement applies. The notes state that both interest expenditures were allowable on the evidentiary record. en-us Mon, 20 Jul 2026 00:00:00 +0530 Tue, 28 Jul 2026 08:30:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=795820 Interest on partners' running capital accounts may be allowable where the partnership deed authorises it and daily running credit balances, rather than opening or closing debit balances, establish the accrued liability. Under mercantile accounting, year-end credit entries do not by themselves make the expense fictitious when supporting computations are unrebutted. Interest credited to a lender is not disallowable under section 40(a)(ia) where tax deduction and deposit are established, the recipient has recognised the income, and no separate banking-channel transfer requirement applies. The notes state that both interest expenditures were allowable on the evidentiary record. Case-Laws Income Tax Mon, 20 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=795820