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2017 (11) TMI 199 - AT - Income TaxAddition u/s.68 - Held that:- As the assessee was able to explain the deposit in the bank account, also as the authorities below failed to bring on record any evidence contrary to the fact that the cash was not available with the assessee, we are of the view that the explanation of the assessee was plausible and therefore the assessee was able to explain the source of cash deposit. Claim of interest paid to partners as deduction - interest on outstanding amount of remuneration - Held that:- The terms and condition of the partnership deed in the present case were the guiding factors for determining whether the deduction claimed u/s.36 were relatable to the remuneration received by the partner of a firm from such firm. In our considered opinion, if the relevant clauses of the partnership deed provides for payment of remuneration which is independent and separable from the capital contribution made by the partners in the firm and the partnership deed provides for the payment of interest on such contribution, in that eventuality the deduction u/s.36 against the remuneration received by the partners cannot be permitted. The deduction of interest paid can only be permitted if the assessee is receiving the interest income from the capital contribution made by him. In view thereof, we find that the ground raised by the assessee for allowing the deduction is without any merit. Accordingly, we dismiss this ground.
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