2001 (10) TMI 60 - HC - Income Tax

Summary

The High Court of Rajasthan rejected an application under section 256(2) of the Income-tax Act, 1961, regarding the allowability of interest paid to minors on gifts made by partners through book entries. The Tribunal held the gifts to be genuine, and the interest was considered an allowable expense for the firm's business purpose. The court found no question of law and rejected the application.