Disallowance of interest u/s. 36(1)(iii) - loan borrowed for the ...

Case Laws Income Tax

January 10, 2024

Disallowance of interest u/s. 36(1)(iii) - loan borrowed for the purpose of settling outgoing partners’ capital account - The settlement of capital account of outgoing partners becomes debt of partnership firm and discharge of said debt out of borrowed funds assumes the character of loans/funds borrowed for the purpose of business of the assessee. - interest paid on borrowed capital account is allowable deduction u/s. 36(1)(iii) of the Act. - AT

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Disallowance of interest u/s. 36(1)(iii) - loan borrowed for the ...

Case Laws Income Tax

January 10, 2024

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