https://www.taxtmi.com/caselaws?id=61449 Interest on partners' debit balances was held not disallowable because the Revenue failed to show any nexus between borrowed funds and non-business withdrawals, and the partnership deed did not require interest on such balances. Interest paid for delayed sales-tax and royalty payments was treated as compensatory business expenditure, not a penal levy, because it arose under the applicable tax provision and the contractual royalty terms. An addition for alleged shortage of scants was deleted because the loss was explained as stock already forming part of closing stock and as natural transit loss in the timber trade, with no proof of undisclosed sales or unexplained deficiency. en-us Wed, 28 Dec 1994 00:00:00 +0530 Wed, 12 Jan 2011 16:31:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=61449 Interest on partners' debit balances was held not disallowable because the Revenue failed to show any nexus between borrowed funds and non-business withdrawals, and the partnership deed did not require interest on such balances. Interest paid for delayed sales-tax and royalty payments was treated as compensatory business expenditure, not a penal levy, because it arose under the applicable tax provision and the contractual royalty terms. An addition for alleged shortage of scants was deleted because the loss was explained as stock already forming part of closing stock and as natural transit loss in the timber trade, with no proof of undisclosed sales or unexplained deficiency. Case-Laws Income Tax Wed, 28 Dec 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=61449