https://www.taxtmi.com/caselaws?id=37880 Section 44 of the Estate Duty Act allowed deduction of debts and encumbrances, and section 46 curtailed that deduction only where the statutory nexus existed between the debt, the consideration, and property derived from the deceased. On the facts, the original creditors had assigned their rights to a firm, but there was no material to show that the gifted properties had become firm property or that the transfer was a sham. The court therefore held that section 46(1)(b) did not apply, section 46(2) could not be invoked, and the entire debt remained deductible under section 44. en-us Mon, 03 Oct 1977 00:00:00 +0530 Thu, 01 Apr 2010 15:43:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37880 Section 44 of the Estate Duty Act allowed deduction of debts and encumbrances, and section 46 curtailed that deduction only where the statutory nexus existed between the debt, the consideration, and property derived from the deceased. On the facts, the original creditors had assigned their rights to a firm, but there was no material to show that the gifted properties had become firm property or that the transfer was a sham. The court therefore held that section 46(1)(b) did not apply, section 46(2) could not be invoked, and the entire debt remained deductible under section 44. Case-Laws Income Tax Mon, 03 Oct 1977 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37880