Interest on Partner's Capital: Averaging Opening and Closing Balances for Accurate Pro-Rata Allowance by Assessing Officer.

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Full Text of the Document

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....Allowability of the interest paid to the partner by the assessee firm calculating on the opening balance of the capital account of the partner without considering the subsequent withdrawals made by the partner - the Assessing Officer has rightly allowed the claim on pro-rata basis i.e. the average of opening and closing balance was taken as eligible amount while allowing the interest paid to the partner - AT....