Capital contribution by partners can’t treated as interest free funds if firm paying interest on it

INCOME TAX : In case of bogus purchases ad hoc addition cannot be made rather same has to be made to extent of difference between gross profit rate on genuine purchases and gross profit rate on hawala purchases

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195418/capital-contribution-by-partners-can’t-treated-as-interest-free-funds-if-firm-paying-interest-on-it.aspx