https://www.taxtmi.com/caselaws?id=7989 A genuine business liability created by crediting Karachi creditors against a corresponding business debit was treated as capital borrowed for the assessee-firm's business. The entries were not mere book adjustments: the matching debit created an equivalent business asset, the transaction was commercially real, and the later substitution of the partners' capital account did not change its character. On that basis, the related interest fell within the statutory allowance as a deductible business expense, and the remaining question was unnecessary to decide because it would not affect the result. en-us Mon, 19 Jan 1970 00:00:00 +0530 Thu, 26 Mar 2009 13:51:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7989 A genuine business liability created by crediting Karachi creditors against a corresponding business debit was treated as capital borrowed for the assessee-firm's business. The entries were not mere book adjustments: the matching debit created an equivalent business asset, the transaction was commercially real, and the later substitution of the partners' capital account did not change its character. On that basis, the related interest fell within the statutory allowance as a deductible business expense, and the remaining question was unnecessary to decide because it would not affect the result. Case-Laws Income Tax Mon, 19 Jan 1970 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7989