Additions as notional interest pertaining to one of the partners ...

Notional Interest on Partner's Debit Balance Not Justifiable for Taxation; AO's Action Lacks Legal Basis.

February 15, 2020

Case Laws Income Tax AT

Additions as notional interest pertaining to one of the partners - Debit balance in the account of partner while the assessee is paying interest on bank loan - bringing to tax an amount which is of notional in nature and which was never earned by the assessee cannot stand the test of jurisprudence in the tax regime. No justification in the action of the AO making addition.

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Additions as notional interest pertaining to one of the partners ...

Notional Interest on Partner's Debit Balance Not Justifiable for Taxation; AO's Action Lacks Legal Basis.

February 15, 2020

Case Laws Income Tax AT

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