https://www.taxtmi.com/caselaws?id=29430 A gift of money made through book entries in a firm's accounts may be valid if the surrounding circumstances show a real and bona fide transfer supported by available funds. Mere journal entries are not sufficient by themselves; the inquiry must examine cash and bank balances, the account debited, and whether the transaction reflects an actual transfer rather than a paper adjustment. The earlier decision relied on was fact-specific and did not lay down an absolute rule that such gifts are always invalid. The Tribunal erred in treating book entries as inherently ineffective and in applying that precedent without examining the relevant facts. en-us Tue, 22 Sep 1981 00:00:00 +0530 Fri, 12 Mar 2010 17:20:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=29430 A gift of money made through book entries in a firm's accounts may be valid if the surrounding circumstances show a real and bona fide transfer supported by available funds. Mere journal entries are not sufficient by themselves; the inquiry must examine cash and bank balances, the account debited, and whether the transaction reflects an actual transfer rather than a paper adjustment. The earlier decision relied on was fact-specific and did not lay down an absolute rule that such gifts are always invalid. The Tribunal erred in treating book entries as inherently ineffective and in applying that precedent without examining the relevant facts. Case-Laws Income Tax Tue, 22 Sep 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=29430