https://www.taxtmi.com/caselaws?id=17653 The court found that the transactions of gift leading to interest payments were not genuine, indicating an attempt to manipulate taxable income. Despite not being hit by section 40(b), discrepancies in the partner's accounts raised doubts. The court emphasized the necessity of sufficient credit balances for valid gifts, which were lacking in this case. As a result, the interest payment deduction was disallowed in favor of the Revenue, resolving the income-tax reference and mandating a copy be sent to the Appellate Tribunal. en-us Mon, 22 Jul 1996 00:00:00 +0530 Wed, 23 Sep 2009 18:49:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=17653 The court found that the transactions of gift leading to interest payments were not genuine, indicating an attempt to manipulate taxable income. Despite not being hit by section 40(b), discrepancies in the partner's accounts raised doubts. The court emphasized the necessity of sufficient credit balances for valid gifts, which were lacking in this case. As a result, the interest payment deduction was disallowed in favor of the Revenue, resolving the income-tax reference and mandating a copy be sent to the Appellate Tribunal. Case-Laws Income Tax Mon, 22 Jul 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=17653