Tds on interest where that interest isn't charged to business

Hi,

 My doubt is whether TDS is to be made on interest paid to loan creditor when such interest is not charged to P&L instead debited to Capital A/c.

Mr A. is a Tax Audit Assesse. he has taken loan from Mr.B for personal use and paid interest . Such interest is not charged to Business P&L A/c . It is debited to Capital A/c directly.

1. My doubt is whether the treatment is correct

2. Should TDS be made on Such interest paid

3.Since interest is not charged to P&L , the same cannot not be disallowed on grounds of not deducting TDS (for TAx Audit Assesse). is this correct..?

Thank u