https://www.taxtmi.com/caselaws?id=193326 A bona fide gift of money can be completed through book entries in a firm's accounts without physical delivery where the transfer operates as a real and effective change in ownership. The decisive question was not the cash available on the date of the entries, but whether the transaction was genuine and completed in law. Because the donees' accounts were credited on the same day, interest was later credited on those balances, and withdrawals were made, the entries were treated as an effective transfer in the ordinary course of business. On those facts, section 123 of the Transfer of Property Act did not defeat the transfer, and interest paid on the credited amounts was an allowable deduction. en-us Mon, 17 Jan 1966 00:00:00 +0530 Mon, 24 Jul 2017 17:20:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=193326 A bona fide gift of money can be completed through book entries in a firm's accounts without physical delivery where the transfer operates as a real and effective change in ownership. The decisive question was not the cash available on the date of the entries, but whether the transaction was genuine and completed in law. Because the donees' accounts were credited on the same day, interest was later credited on those balances, and withdrawals were made, the entries were treated as an effective transfer in the ordinary course of business. On those facts, section 123 of the Transfer of Property Act did not defeat the transfer, and interest paid on the credited amounts was an allowable deduction. Case-Laws Income Tax Mon, 17 Jan 1966 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=193326