https://www.taxtmi.com/caselaws?id=26456 The court consolidated applications under section 256(2) of the Income-tax Act, 1961, regarding deductibility of interest paid on gifts to minors. It ruled that interest paid on gifts made by partners to minors for business purposes is deductible under section 36(1)(iii) of the Act. The court emphasized that the gifted amounts became the property of the minors and, when utilized for business, constituted borrowings for business purposes. The judgment underscored the distinction between gifts made by partners and the firm, affirming the deductibility of interest paid on such gifts for business use. en-us Tue, 08 Oct 1985 00:00:00 +0530 Fri, 05 Feb 2010 10:50:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=26456 The court consolidated applications under section 256(2) of the Income-tax Act, 1961, regarding deductibility of interest paid on gifts to minors. It ruled that interest paid on gifts made by partners to minors for business purposes is deductible under section 36(1)(iii) of the Act. The court emphasized that the gifted amounts became the property of the minors and, when utilized for business, constituted borrowings for business purposes. The judgment underscored the distinction between gifts made by partners and the firm, affirming the deductibility of interest paid on such gifts for business use. Case-Laws Income Tax Tue, 08 Oct 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=26456