Interest Paid to Partnership Firm Allowable Against Interest Income: ITAT Mumbai

Nishit Kantilal Savla Vs DCIT (ITAT Mumbai) Interest Paid to Partnership Firm Allowable Against Interest Income – ITAT Mumbai Allows Deduction u/s 57(iii) Assessee, an individual & partner in M/s Savla Associates and M/s Sadgurukrupa Developers, declared total interest income of ₹44.27 lakh – comprising ₹18.65 lakh from loans & advances and ₹25.61 lakh interest on partner’s capital from Sadgurukrupa Developers. Against this, he claimed deduction of ₹76.06 lakh interest paid to Savla Associates @9% p.a., under Section 57(iii). AO disallowed the claim holding that the borro...