https://www.taxtmi.com/caselaws?id=276203 The court held that interest paid on capital borrowed for a branch outside British India was not deductible for taxation purposes under the Income Tax Act. The court emphasized that deductions should represent expenses necessary to earn taxable profits and rejected the argument that capital immediately remitted to the overseas branch could be considered as borrowed for the business in British India. Additionally, the court found no evidence that profits from the overseas branch were remitted to the domestic branch, leading to the dismissal of the reference and awarding costs to the Crown. en-us Thu, 08 Dec 1927 00:00:00 +0530 Thu, 01 Nov 2018 16:45:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=276203 The court held that interest paid on capital borrowed for a branch outside British India was not deductible for taxation purposes under the Income Tax Act. The court emphasized that deductions should represent expenses necessary to earn taxable profits and rejected the argument that capital immediately remitted to the overseas branch could be considered as borrowed for the business in British India. Additionally, the court found no evidence that profits from the overseas branch were remitted to the domestic branch, leading to the dismissal of the reference and awarding costs to the Crown. Case-Laws Income Tax Thu, 08 Dec 1927 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=276203