No penalty on undisputed claim of Interest paid to firm against business income

Bhawneshwar Kumar Vs ITO (ITAT Chandigarh) In the instant case, the matter relates to claim of interest paid by the assessee to the partnership firm where the assessee is a partner and from where the assessee also draws the remuneration. Both the interest paid and remuneration received from the partnership firm has been duly reflected in the return of income and it is thus manifest that the same will falls under the head “Income from business/profession” and given that interest paid is more than salary income, the same has resulted in a business loss and which has further been set off agai...