https://www.taxtmi.com/caselaws?id=183482 Interest paid by a bank to its depositors was held not to be chargeable to tax where the depositors had no knowledge or concern that the bank would use the borrowed funds in British India to earn income. The governing principle applied was that taxability of such interest depended on an integral nexus between the lender and the use of the money in British India, including the lender's awareness that the funds would be taken there and employed for income production. On those facts, the bank had no obligation to deduct tax under Section 18(3A), and it remained entitled to the deduction claimed under Section 10(2)(iii). en-us Thu, 15 Sep 1949 00:00:00 +0530 Fri, 10 Jun 2016 17:37:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=183482 Interest paid by a bank to its depositors was held not to be chargeable to tax where the depositors had no knowledge or concern that the bank would use the borrowed funds in British India to earn income. The governing principle applied was that taxability of such interest depended on an integral nexus between the lender and the use of the money in British India, including the lender's awareness that the funds would be taken there and employed for income production. On those facts, the bank had no obligation to deduct tax under Section 18(3A), and it remained entitled to the deduction claimed under Section 10(2)(iii). Case-Laws Income Tax Thu, 15 Sep 1949 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=183482