https://www.taxtmi.com/caselaws?id=8625 Interest credited to the assessee's wife and minor son in the firm was held includible in the assessee's total income under section 16(3)(a)(i) and (ii) because the funds remained with the firm in circumstances linked to their status in the partnership. The credits arose from partition of the joint family business and were carried into the new firm without any specific agreement converting them into ordinary loans or deposits. The arrangement was not treated as a normal outsider lending transaction, since the rate of interest was to be fixed by the partners and was payable irrespective of profits. The interest was therefore treated as arising at least indirectly from the wife's membership and the minor's admission to benefits of the partnership. en-us Thu, 13 May 1971 00:00:00 +0530 Fri, 08 May 2009 17:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8625 Interest credited to the assessee's wife and minor son in the firm was held includible in the assessee's total income under section 16(3)(a)(i) and (ii) because the funds remained with the firm in circumstances linked to their status in the partnership. The credits arose from partition of the joint family business and were carried into the new firm without any specific agreement converting them into ordinary loans or deposits. The arrangement was not treated as a normal outsider lending transaction, since the rate of interest was to be fixed by the partners and was payable irrespective of profits. The interest was therefore treated as arising at least indirectly from the wife's membership and the minor's admission to benefits of the partnership. Case-Laws Income Tax Thu, 13 May 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8625