1980 (3) TMI 117

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..... sessee by the ITO, A-Ward Thiruvalla, under s. 143(3) of the IT Act, 1961, for the asst. yr. 1977-78, the relevant previous year ending 31st March, 1977. 2. The assessee is a partner of the firm, M/s Ayyappa Jyothi Trading Corporation, along with three others, C.K. Ramchandran Nair, P. Kittu Pillai and Thankappa Pillai. He filed the return disclosing income of Rs. 26,806. The ITO, by his order .....

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..... ssee wrote to the ITO claiming the above deduction. It will be noticed from the above letter that such a claim was by the assessee after it received the order of assessment passed on the firm from which it was seen that the claim made for deduction of interest in the computation of the firm's income had been rejected. 3. Aggrieved by such assessment, the assessee preferred appeal to the AAC rei .....

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..... e previous year and so it could not be said as to whether any interest had been paid. 7. Sec. 67(3) of the IT Act, 1961, clearly provides that any interest paid by a partner on capital borrowed by him for the purposes of investment in the firm shall be deducted from the share income in computing his income chargeable under the head "profits and gains of business or profession." Therefore, if th .....

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