https://www.taxtmi.com/caselaws?id=24258 The High Court of GAUHATI ruled in favor of the assessee, Mahatta Construction Co., in a case where a partner withdrew Rs. 50,000 from the firm's capital account to gift to his niece. The court held that the withdrawal and subsequent gift were valid under the Indian Partnership Act, as there was no prohibition on withdrawals in the partnership deed. The court also deemed the interest payment to the donee as allowable deduction for the firm. The judges unanimously found no illegality in the transactions and decided in favor of the assessee without imposing costs. en-us Mon, 26 Sep 1988 00:00:00 +0530 Mon, 18 Jan 2010 17:43:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=24258 The High Court of GAUHATI ruled in favor of the assessee, Mahatta Construction Co., in a case where a partner withdrew Rs. 50,000 from the firm's capital account to gift to his niece. The court held that the withdrawal and subsequent gift were valid under the Indian Partnership Act, as there was no prohibition on withdrawals in the partnership deed. The court also deemed the interest payment to the donee as allowable deduction for the firm. The judges unanimously found no illegality in the transactions and decided in favor of the assessee without imposing costs. Case-Laws Income Tax Mon, 26 Sep 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=24258