https://www.taxtmi.com/caselaws?id=265668 A bona fide family arrangement, when genuine, voluntary and acted upon in the parties' accounts and conduct, can be effective for tax purposes even if a sale deed is later executed by one family member for convenience because mutation was incomplete; in that situation, capital gains are not automatically assessable in the executant's hands and taxing the same gain would risk double taxation. Interest on borrowings used to repay earlier business loans remains deductible where the borrowing retains its business character and the funds were originally deployed for business purposes. The capital gains addition and the interest disallowance were both deleted. en-us Mon, 07 Sep 2015 00:00:00 +0530 Wed, 14 Oct 2015 08:05:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=265668 A bona fide family arrangement, when genuine, voluntary and acted upon in the parties' accounts and conduct, can be effective for tax purposes even if a sale deed is later executed by one family member for convenience because mutation was incomplete; in that situation, capital gains are not automatically assessable in the executant's hands and taxing the same gain would risk double taxation. Interest on borrowings used to repay earlier business loans remains deductible where the borrowing retains its business character and the funds were originally deployed for business purposes. The capital gains addition and the interest disallowance were both deleted. Case-Laws Income Tax Mon, 07 Sep 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=265668