Section 64(1)(v) — the law in short
What the courts have decided on section 64(1)(v), in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.
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CIT v Mridu Hari Dalmia
High CourtHelps departmentNo later treatment found
I did not gift the money — I lent it, interest free, and it is shown as a loan in my books. Does that keep the income out of the clubbing net?
Not where the supposed borrower cannot contract. A loan is in essence a contract, requiring two parties and an enforceable promise to repay; a minor's contract is void, and a person cannot lend to himself merely because he acts in two capacities. The Delhi High Court therefore held that the money handed over was a transfer of assets, and the interest earned on it was income arising from assets transferred, includible in the transferor's hands.
Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.
