JUDGMENT - Chagla, C.J.

1. The assessee is a partner in the firm of Messrs. Narottam Morarji Co. The firm is a registered firm and his share of the profits in this firm for the assessment year 1942-43, which corresponds with the year of account Samvat Year 1997, amounted to Rs. 2,28,706. This share was shown by the assessee in his return of total income. The assessee claimed that he had paid a certain amount as interest on moneys borrowed and he claimed that amount of interest as a permissible deduction against the profits shown by him in respect of his share in the firm of Messrs. Narottam Morarji Co. and the question that arises is, first, whether it is open to a partner in a registered firm to claim any deduction whatsoever against the amount of profit determined by the Income-tax authorities as the profits of the firm, and the other question that arises is whether, if it is so permissible to the assessee to claim those deductions, whether the deductions claimed in this case are permissible deductions.

2. Now, in the year of account Samvat year 1997 the assessee paid interest amounting to Rs. 31,382. The loans on which this interest was paid amounted to Rs. 6,19,478. The Inco

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