About Sec. 40(b) of IT Act 1961
This query is : Resolved
23 June 2009
Wheter Interest on enhanced capital of Partners due to revaluation is allowable or not?
23 June 2009
Hi Amit,
There is no prohibition as such in sec. 40(b). Although your question is interesting but according to my view interest should be allowed. The important point is that it should be in accordance with the partnership deed. Therefore it is better to amend the partnership deed accordingly and then pay the interest on such increased capital.
Experts please clarify, if any alternate view is there.
There is no prohibition as such in sec. 40(b). Although your question is interesting but according to my view interest should be allowed. The important point is that it should be in accordance with the partnership deed. Therefore it is better to amend the partnership deed accordingly and then pay the interest on such increased capital.
Experts please clarify, if any alternate view is there.
26 June 2009
In my opinion, it is not allowed.
There is a case law on it, I will try to post it as soon as get it.
There is a case law on it, I will try to post it as soon as get it.
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