1986 (10) TMI 96

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ands of the assessee under s. 64 of the IT Act as the assessee was a partner in the firm in which the deposit stood in the name of the minor. This year lesser interest was shown to have been credited. Therefore, the ITO asked the reasons for doing so. In the first instance, the assessee's reply was that he received interest at 6 per cent instead of 12 per cent as in the past. Later the plea taken ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

...., CIT vs. Birla Gwalior P. Ltd. 1973 CTR (SC) 349 : (1973) 89 ITR 266. To my mind, these authorities would not help the assessee. The first case only lays down that the provisions of s. 64 should be strictly construed and in the second case, waiver of interest was held to be valid on account of commercial expediency. Apparently, there is no reason as to why interest should have been waived by the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....terest on the original gifted amount only and not on any amount received by the minor son on account of interest itself. 3. Lastly it was argued that in the firm's case that no deduction on account of this extra amount of interest added in the hands of the assessee was claimed. This indirectly means that the assessee did not get any deduction in respect of his share of income from the firm on a....