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.<

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