https://www.taxtmi.com/caselaws?id=277213 The court held that the sum of Rs. 20,124 was allowable as a deduction under Section 10(2)(iii) of the Indian Income-tax Act, 1922, as interest on borrowed capital. The court found that the residue of the estate had not vested in the assessee as the gifts were contingent upon the survival of specific legatees. As the legatees were alive, the residue remained part of the testator's estate in the hands of the assessee as executor. Therefore, the interest debited on the amount credited to the estate was allowed as interest paid on borrowed capital, resulting in the deduction being permitted. en-us Fri, 08 Nov 1946 00:00:00 +0530 Thu, 29 Nov 2018 10:49:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=277213 The court held that the sum of Rs. 20,124 was allowable as a deduction under Section 10(2)(iii) of the Indian Income-tax Act, 1922, as interest on borrowed capital. The court found that the residue of the estate had not vested in the assessee as the gifts were contingent upon the survival of specific legatees. As the legatees were alive, the residue remained part of the testator's estate in the hands of the assessee as executor. Therefore, the interest debited on the amount credited to the estate was allowed as interest paid on borrowed capital, resulting in the deduction being permitted. Case-Laws Income Tax Fri, 08 Nov 1946 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=277213