Sunday, September 11, 2011

Where assessee-firm paid certain amount to retiring partners in terms of re

 
Where assessee-firm paid certain amount to retiring partners in terms of retirement deed, it did not create any tangible or intangible asset in its books of account on which depreciation under section 32(1)(ii) was allowable

Where assessee claimed deduction in respect of interest paid on funds borrowed for purpose of making payment to retiring partners of firm, in view of fact that continuing partners had taken a conscious view that retiring partners should be paid for safeguarding interests of firm and for purpose of better commercial expediency, interest in question was to be allowed under section 36(1)(iii) - [2011] 12 taxmann.com 504 (Mum. - ITAT)

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