https://www.taxtmi.com/caselaws?id=57584 Interest earned by wives, minor children and joint families on funds advanced by partners was treated as their own income where the advances were genuine and for consideration, so the clubbing provisions under sections 60 and 64 did not apply. The note also states that such loan transactions could not be ignored as non est merely because a person cannot contract with himself, since transfers in different capacities are recognised in law. On that basis, interest paid by the firm on the deposits was not liable to disallowance under section 40(b), as the amount was not shown to be interest paid to a partner. A mere tax-saving arrangement, without proof of sham or benami character, was insufficient to disregard the transactions. en-us Thu, 19 Sep 1985 00:00:00 +0530 Fri, 10 Dec 2010 18:49:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=57584 Interest earned by wives, minor children and joint families on funds advanced by partners was treated as their own income where the advances were genuine and for consideration, so the clubbing provisions under sections 60 and 64 did not apply. The note also states that such loan transactions could not be ignored as non est merely because a person cannot contract with himself, since transfers in different capacities are recognised in law. On that basis, interest paid by the firm on the deposits was not liable to disallowance under section 40(b), as the amount was not shown to be interest paid to a partner. A mere tax-saving arrangement, without proof of sham or benami character, was insufficient to disregard the transactions. Case-Laws Income Tax Thu, 19 Sep 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=57584