2001 (1) TMI 26 - HC - Income Tax

Summary

The High Court of Delhi considered the allowability of interest to a Hindu undivided family (HUF) in relation to the Income-tax Act, 1961. The court found that the interest was allowable as expenditure under sections 36(1)(iii) and 37 of the Act. It was established that the HUF existed before the death of the individual, and the absence of a specific agreement for paying interest did not invalidate the claim. The court declined to answer the questions raised by both the Revenue and the assessee regarding the allowability and rate of interest, as they were deemed factual in nature. All reference applications were disposed of accordingly.