https://www.taxtmi.com/caselaws?id=292010 A gift of money forming part of a firm's assets can be validly completed by a bona fide declaration and book entries where physical cash delivery is impracticable and the donor has done all that was possible to divest beneficial ownership. Here, the donees were credited in the firm's books and treated as entitled to interest, so the gifts were valid. Once valid, the credited sums became liabilities of the firm, and interest paid on them was allowable as interest on capital borrowed for business purposes under Section 10(2)(iii) of the Income-tax Act, 1922. The deduction was therefore admissible. en-us Mon, 15 Oct 1962 00:00:00 +0530 Fri, 04 Dec 2020 12:14:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=292010 A gift of money forming part of a firm's assets can be validly completed by a bona fide declaration and book entries where physical cash delivery is impracticable and the donor has done all that was possible to divest beneficial ownership. Here, the donees were credited in the firm's books and treated as entitled to interest, so the gifts were valid. Once valid, the credited sums became liabilities of the firm, and interest paid on them was allowable as interest on capital borrowed for business purposes under Section 10(2)(iii) of the Income-tax Act, 1922. The deduction was therefore admissible. Case-Laws Income Tax Mon, 15 Oct 1962 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=292010