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2022 (8) TMI 195 - ITAT PUNEPayment of interest on capital contribution made by the appellant to the firm - Taxability of the remuneration received from the partnership firm and interest on capital contribution made by the partner of the firm in the absence of any business income in the hands of the firm - contention of the appellant is that in the absence of any business income in the hands of the firm, the question of allowance of any deduction under the provisions of section 40(b) does not arise - HELD THAT:- The reasoning of the CIT(A) that there was no disallowance made by the Assessing Officer u/s.40(b) and, therefore, the question of applicability of proviso does not arise, in our considered opinion, is unreasonable. The question of disallowance by the Assessing Officer arises only in the event of claim for allowance by the firm. When there was no claim made by the assessee firm u/s. 40B, the question of disallowance does not arise. Therefore we are of the considered opinion that the matter requires a remission to the file of the Assessing Officer to decide the issue on hand with reference to the assessment record of the assessee firm in accordance with law as enunciated by us after affording a reasonable opportunity of being heard to the assessee firm. Thus, the grounds raised by the assessee stand partly allowed for statistical purposes.
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