https://www.taxtmi.com/caselaws?id=57412 Character of a financial transaction depends on the parties' intention and the surrounding facts, not on labels used in isolation. On the stated facts, amounts advanced with interest were treated as debt and a genuine money-lending activity, even though the funds were concentrated in one debtor. The absence of a money-lending licence did not make the activity unlawful where the governing statute did not prohibit lending itself, so registration as a firm was supportable. Once that status was accepted, assessment on the footing of an association of persons could not stand, and taxable income had to be recomputed afresh after hearing the assessee. en-us Thu, 10 Jan 1985 00:00:00 +0530 Fri, 10 Dec 2010 10:35:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=57412 Character of a financial transaction depends on the parties' intention and the surrounding facts, not on labels used in isolation. On the stated facts, amounts advanced with interest were treated as debt and a genuine money-lending activity, even though the funds were concentrated in one debtor. The absence of a money-lending licence did not make the activity unlawful where the governing statute did not prohibit lending itself, so registration as a firm was supportable. Once that status was accepted, assessment on the footing of an association of persons could not stand, and taxable income had to be recomputed afresh after hearing the assessee. Case-Laws Income Tax Thu, 10 Jan 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=57412