Held that the claim of interest paid to the legal heirs in the nature of loan and the interest, was already subjected to tax deduction at source, it could not be disallowed merely on the ground of passing an entry or on the ground that it was not a loan amount. Accordingly, the order of the Commissioner (Appeals) was modified and the matter was remanded to the record of the Assessing Officer for readjudication of this issue as per law. (AY. 2011-12)
Savla Agencies v. JCIT (2023)101 ITR 57 (SN) (All) (Trib)
S. 40(b)(iv) : Amounts not deductible-Partner-Interest-Interest payment to legal heirs of dead partner-Already subjected to tax deducted at source-Cannot be disallowed on the ground of passing of entry-Remanded. [S. 36(1) (iii), 194A]