https://www.taxtmi.com/caselaws?id=38574 Interest payable on unsecured family debts assumed on partition was treated as diverted at source because the properties were received subject to the creditors' superior claim, so that amount never formed part of the assessees' real income. The same interest was not deductible under section 12(2) of the Indian Income-tax Act, 1922, because the liability was not incurred solely for earning the income from the properties but arose from the burden attached to the assets on allotment. The court accordingly distinguished between exclusion under the real income doctrine and allowance as a statutory deduction, and held that the diverted interest had to be left out of real income but not allowed as expenditure. en-us Tue, 27 Apr 1976 00:00:00 +0530 Wed, 07 Apr 2010 13:07:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38574 Interest payable on unsecured family debts assumed on partition was treated as diverted at source because the properties were received subject to the creditors' superior claim, so that amount never formed part of the assessees' real income. The same interest was not deductible under section 12(2) of the Indian Income-tax Act, 1922, because the liability was not incurred solely for earning the income from the properties but arose from the burden attached to the assets on allotment. The court accordingly distinguished between exclusion under the real income doctrine and allowance as a statutory deduction, and held that the diverted interest had to be left out of real income but not allowed as expenditure. Case-Laws Income Tax Tue, 27 Apr 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38574