Tribunal held that the partners of the assessee-firm had declared interest received from the assessee-firm in their returns of incomes and accordingly, the assessments were completed in the hands of the partners. This amounted to double taxation of the same income both in the hands of the partners as well as in the hands of the assessee-firm. Though the Commissioner (Appeals) had directed the Assessing Officer to rectify the assessments in the hands of the partners, this exercise may not be practical since the assessment order pertained to the assessment year 2007-08. Since the entire exercise done by the Assessing Officer in the facts and circumstances of the case was revenue neutral, interest paid to the partners based on the opening balance was to be granted deduction.( AY.2007-08)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 40(b)(iv) : Amounts not deductible \u2013 Partner \u2013 Interest -Partners Declaring interest in their returns and assessments completed in their hands \u2014 Double taxation of same income both in hands of partners as well as firm \u2013 Interest payment is held to be allowable .<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-14040","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-3Es","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/14040","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=14040"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/14040\/revisions"}],"predecessor-version":[{"id":14041,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/14040\/revisions\/14041"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=14040"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=14040"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=14040"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}