https://www.taxtmi.com/caselaws?id=36751 The High Court of Allahabad ruled in favor of the assessee, holding that the gift of Rs. 35,000 made by Smt. Prakash Kaur to the Hindu Undivided Family (HUF) was valid under Hindu law. The court allowed the interest payment of Rs. 5,250 by the firm to the HUF as a deductible expense, as the money became that of the HUF upon the gift. Since the interest was paid to the HUF and not directly to Smt. Prakash Kaur, who was a partner, it was deemed permissible under Section 40(b) of the Income Tax Act. en-us Mon, 15 Oct 1979 00:00:00 +0530 Wed, 24 Mar 2010 12:41:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36751 The High Court of Allahabad ruled in favor of the assessee, holding that the gift of Rs. 35,000 made by Smt. Prakash Kaur to the Hindu Undivided Family (HUF) was valid under Hindu law. The court allowed the interest payment of Rs. 5,250 by the firm to the HUF as a deductible expense, as the money became that of the HUF upon the gift. Since the interest was paid to the HUF and not directly to Smt. Prakash Kaur, who was a partner, it was deemed permissible under Section 40(b) of the Income Tax Act. Case-Laws Income Tax Mon, 15 Oct 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36751