https://www.taxtmi.com/caselaws?id=70186 Section 46 of the Estate Duty Act, 1953 applies only where there is a real nexus between property derived from the deceased and the debt sought to be deducted. Although section 44 allows deduction of bona fide debts for full consideration, that deduction is restricted if the consideration for the debt consists of gifted property or if the lender's resources included such property. On the facts, the gifted amount had been withdrawn, the creditor had independent funds, and the later advances in the running account were not shown to have been made by reference to the gift. Section 46 therefore did not apply, and the debt deduction could not be scaled down. en-us Mon, 08 Oct 1979 00:00:00 +0530 Thu, 14 Apr 2011 17:31:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=70186 Section 46 of the Estate Duty Act, 1953 applies only where there is a real nexus between property derived from the deceased and the debt sought to be deducted. Although section 44 allows deduction of bona fide debts for full consideration, that deduction is restricted if the consideration for the debt consists of gifted property or if the lender's resources included such property. On the facts, the gifted amount had been withdrawn, the creditor had independent funds, and the later advances in the running account were not shown to have been made by reference to the gift. Section 46 therefore did not apply, and the debt deduction could not be scaled down. Case-Laws Income Tax Mon, 08 Oct 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=70186