https://www.taxtmi.com/caselaws?id=7924 Interest on bank overdrafts was deductible under section 10(2)(iii) where the borrowing served the business purpose of remitting Indian profits to the United Kingdom for payment of dividends by a non-resident company. The later retention of a surplus overseas, which earned interest, did not change the original purpose of the borrowing. Tax authorities could not apply the stricter language of section 10(2)(xv) or apportion the overdrafts between business and non-business use. On the established facts, the remittances were made from profits earned in India and the overdrafts were used in carrying on the business; full interest deduction was allowable. en-us Wed, 25 Feb 1970 00:00:00 +0530 Tue, 24 Mar 2009 17:06:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7924 Interest on bank overdrafts was deductible under section 10(2)(iii) where the borrowing served the business purpose of remitting Indian profits to the United Kingdom for payment of dividends by a non-resident company. The later retention of a surplus overseas, which earned interest, did not change the original purpose of the borrowing. Tax authorities could not apply the stricter language of section 10(2)(xv) or apportion the overdrafts between business and non-business use. On the established facts, the remittances were made from profits earned in India and the overdrafts were used in carrying on the business; full interest deduction was allowable. Case-Laws Income Tax Wed, 25 Feb 1970 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7924