Absence of interest income on capital from firm is no bar to claim interest paid on borrowings for contributing capital to firm

Suresh Sreeram Vs ITO (ITAT Banglore)

Interest, salary, bonus, commission or remuneration received or receivable from the firm by the partners shall be assessable in the hands of the partners as income from business or profession under section 28 of the Act. The partner shall be entitled to all expenditure which is incurred to earn such income or for purposes of the said business. Other deductions as admissible in law can also be claimed by the partner against such income. Under the old provisions, section 67(3) entitled a p

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