https://www.taxtmi.com/caselaws?id=60355 The Appellate Tribunal held that the deduction for interest paid by a partner on capital borrowed for investment in a firm is not allowable under sections 67(3) or 36(1)(iii) of the Income-tax Act, 1961 when there is no share income from the firm. The Tribunal differentiated between sections 57(iii) and 67(3), emphasizing that the latter requires share income to justify the deduction. Relying on previous court decisions, the Tribunal concluded that without income from the firm, the interest paid on borrowed capital cannot be allowed as a deduction. Consequently, the Tribunal allowed the department's appeal, overturning the Appellate Assistant Commissioner's decision. en-us Wed, 11 Feb 1987 00:00:00 +0530 Tue, 04 Jan 2011 17:48:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=60355 The Appellate Tribunal held that the deduction for interest paid by a partner on capital borrowed for investment in a firm is not allowable under sections 67(3) or 36(1)(iii) of the Income-tax Act, 1961 when there is no share income from the firm. The Tribunal differentiated between sections 57(iii) and 67(3), emphasizing that the latter requires share income to justify the deduction. Relying on previous court decisions, the Tribunal concluded that without income from the firm, the interest paid on borrowed capital cannot be allowed as a deduction. Consequently, the Tribunal allowed the department's appeal, overturning the Appellate Assistant Commissioner's decision. Case-Laws Income Tax Wed, 11 Feb 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=60355