https://www.taxtmi.com/caselaws?id=186294 Interest on foreign borrowings used in India for share and securities purchases was held not disallowable where the sum was not shown to be chargeable to tax in India. The analysis notes that section 58(1)(a)(ii) applies only to interest chargeable under the Act and not paid or deducted, while section 195 withholding arises only if the payment is chargeable in the recipient's hands. Because the borrowings and interest payment were both outside India, and the assessee was treated as an investor rather than as carrying on a share-dealing business in India, section 9(1)(v) did not apply and no withholding obligation arose. en-us Wed, 30 Apr 1997 00:00:00 +0530 Tue, 13 Sep 2016 17:00:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=186294 Interest on foreign borrowings used in India for share and securities purchases was held not disallowable where the sum was not shown to be chargeable to tax in India. The analysis notes that section 58(1)(a)(ii) applies only to interest chargeable under the Act and not paid or deducted, while section 195 withholding arises only if the payment is chargeable in the recipient's hands. Because the borrowings and interest payment were both outside India, and the assessee was treated as an investor rather than as carrying on a share-dealing business in India, section 9(1)(v) did not apply and no withholding obligation arose. Case-Laws Income Tax Wed, 30 Apr 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=186294