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Interest on Partner Capital Allowed as Deduction to Avoid Double Taxation u/s 40(b) of Income Tax Act.

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....Interest on capital paid to the partner - payment of interest by the two partnership firms towards use of partners’ capital - Expenditure incurred on account of commercial expediency or not? - Since the amount has been taxed in the hands of partners u/s 28(v) of the Act same to be allowed in the hands of the assessee u/s 40(b) of the Act, otherwise it amounts to double taxation - AO directed to allow the deduction to the extent of limit prescribed in section 40(b) - AT....

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Interest on Partner Capital Allowed as Deduction to Avoid Double Taxation u/s 40(b) of Income Tax Act.