Interest on capital accounts of partners to be calculated on actual duration basis

Savla Agencies Vs JCIT (ITAT Allahabad) ITAT Allahabad held that the interests on the credit balance in the capital account of the partners of the firms has to be calculated on the actual duration of the credit remains in the capital account and not on opening or closing day of financial year. Facts- The matter here relates to disallowance of interest on capital accounts of the partners of the firms. Notably, the assessee calculated the interest on the daily product basis whereas the AO took the closing balance in the capital account and re-computed the allowable interest under section 40(b)(i...