https://www.taxtmi.com/caselaws?id=795820 Interest on partners' running capital accounts is 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 journal credits do not by themselves make the expenditure fictitious when supporting records substantiate the computation and recipients recognise the income. Interest credited to a lender is not disallowable under section 40(a)(ia) where tax deduction and deposit are established and the recipient has included the amount in taxable income. Banking-channel transfer is not an additional condition once interest is credited and subjected to tax deduction. 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 is 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 journal credits do not by themselves make the expenditure fictitious when supporting records substantiate the computation and recipients recognise the income. Interest credited to a lender is not disallowable under section 40(a)(ia) where tax deduction and deposit are established and the recipient has included the amount in taxable income. Banking-channel transfer is not an additional condition once interest is credited and subjected to tax deduction. Case-Laws Income Tax Mon, 20 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=795820