The scenario is as follows:
The partnership firm only gets rental income but is authorised to pay interest on capital to partners as per the registered Partnership Deed. Since the rental income gets taxed as Income from House property, interest paid by firm on partner's capital cannot be claimed U/s 24. The firm does not have any income from business or profession. However since it is authorized to pay int on partners capital, can the firm claim a loss from business (arising from claiming interest on capital) and then set-off (inter-head) agains Income from HOuse Property