Notional interest on debit balance of partner’s account unsustainable as not specified in partnership deed

Enco Shoes Vs DCIT (ITAT Delhi) ITAT Delhi held that notional interest on debit balance of partner’s account not sustainable in absence of information of diversion of interest bearing borrowed funds for non-business purpose. Further, notional interest cannot be charged for taxing in the partner’s debt balance specifically when there is no discussion in the partnership deed Facts- The facts noted by AO are that there is debt balance in the partners account of Rs.1,16,50,965/- i.e., in the account of Shri Najmul Hasan and Smt. K. Faiza Simin and further, there is an investment in the name of...