1960 (8) TMI 105

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....ssee was the financing partner of the registered partnership firm. The other partner, Rangaswami, was styled the working partner. That the assessee had to borrow for financing the business of the partnership firm and that he had to pay interest on such loans were never in doubt. The figures were set out in paragraph 7 of the statement of the case. The first question referred to this court under se....

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....ges of the Bombay High Court eventually came to the conclusion in that case that the loans had not been borrowed for the business. In Mool Chand v. Commissioner if Income Tax the Hyderabad High Court dealt directly with the claim to deduct payments of interest and upheld that claim. 2. The learned counsel for the Department conceded the position, that in such cases, interest payments are lawful....

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....ip, (2) to sign the cheques the expenses of the firm, and (3) to keep in his custody, outside the usual working hours, the books, cash and the key of the firm. That was provided for in clause (5) of annexure "A". 4. The finding of the Tribunal was that there was no evidence on record that the assessee took any active part in the business except signing cheques. 5. It is on this basis that we....