https://www.taxtmi.com/caselaws?id=5534 Interest paid on debts and liabilities allotted to an assessee on partial partition of a Hindu undivided family was treated as an application of income, not a diversion of income by overriding title. The assets vested absolutely in the assessees, and the creditors obtained no beneficial interest in either the assets or the income from them. No charge or trust arose under the partition arrangement, award, or decree to divert income before accrual. The real income theory did not justify deduction outside the framework of the Income-tax Act. The claimed deduction therefore failed, and the interest remained taxable in the assessees' hands. en-us Tue, 20 Aug 1996 00:00:00 +0530 Wed, 26 Nov 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5534 Interest paid on debts and liabilities allotted to an assessee on partial partition of a Hindu undivided family was treated as an application of income, not a diversion of income by overriding title. The assets vested absolutely in the assessees, and the creditors obtained no beneficial interest in either the assets or the income from them. No charge or trust arose under the partition arrangement, award, or decree to divert income before accrual. The real income theory did not justify deduction outside the framework of the Income-tax Act. The claimed deduction therefore failed, and the interest remained taxable in the assessees' hands. Case-Laws Income Tax Tue, 20 Aug 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5534