Amount taxed in hands of partner u/s 28(v) allowable in hands of firm u/s 40(b)

Century Sheltors Vs ACIT (CESTAT Bangalore) CESTAT Bangalore held that amount taxed in the hands of partner u/s 28(v) needs to be allowed in the hands of the firm u/s 40(b) of the Income Tax Act. Facts- The assesse is a partnership firm carrying on the business of buying, selling and developing immovable property. In these case, assessment orders were framed u/s. 143(3) of the Income Tax Act disallowing the interest on borrowed capital paid to the partners by these firms. AO noted that a firm and its partners are separate entities for the purpose of taxation; and therefore, regardless of an am...