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Income Tax - Highlights / Catch Notes

Home Highlights March 2014 Year 2014 This

Disallowance of interest expenses – partners are entitled to ...

Income Tax

March 26, 2014

Disallowance of interest expenses – partners are entitled to hold the properties belonging to the partnership firm in their individual name, provided it is explicitly made clear - deduction allowed - AT

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  1. Addition towards interest on advances to partners - interest free advances given to partners - Disallowance of interest for diversion of funds - Additions confirmed.

  2. Addition of interest expenses - assessee has made payment to partners as per the Partnership Deed and within the limit prescribed u/s 40(b) - claim of interest expense allowed - AT

  3. Disallowance of payment made to the legal heirs of the deceased partner - overriding charge - amount is deductible as expense - AT

  4. Income on account of interest treated as income from other sources – Disallowance of remuneration to partners from interest income - deduction allowed considering as...

  5. Disallowance for warranty expenses - assessee is entitled to change the method of accounting with respect to claim of warranty expenses from ‘actual basis’ to ‘provision...

  6. While computing annual value of property which has been let out - disallowance made on account of brokerage charges, legal expenses, maintenance charges and insurance...

  7. Adhoc disallowance made on account of expenses under the heard vehicle maintenance, interest on car loan, telephone expenses, travelling expenses and depreciation on car...

  8. Disallowance on work penalty expenses u/s 40(a)(ia) - Whether the work penalty expenses were actually interest expenses liable to provisions of TDS – Held No - HC

  9. Rejection of books result - estimation of NP @5% of gross contractual receipts - assessee firm is entitled for separate deduction of depreciation, interest and salary...

  10. Disallowance of telephone expenses - expenses have been incurred by the partners of the assessee for the purpose of business - Copies of all the orders of the proceeding...

 

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