https://www.taxtmi.com/caselaws?id=276205 Borrowed capital used in a money-lending business remained business capital even after it was represented by agricultural lands received in repayment of loans. The Madras HC held that interest on such borrowed capital was deductible under Section 10(2)(iii) of the Income-tax Act, 1922, because the lands were held as a necessary incident of the business and the agricultural character of the lands did not alter the business nature of the capital. On the same reasoning, establishment, cultivation and related conveyance expenses incurred in managing those lands were also allowable as business deductions. The reference was answered entirely in favour of the assessee. en-us Fri, 15 Jan 1937 00:00:00 +0530 Thu, 01 Nov 2018 17:10:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=276205 Borrowed capital used in a money-lending business remained business capital even after it was represented by agricultural lands received in repayment of loans. The Madras HC held that interest on such borrowed capital was deductible under Section 10(2)(iii) of the Income-tax Act, 1922, because the lands were held as a necessary incident of the business and the agricultural character of the lands did not alter the business nature of the capital. On the same reasoning, establishment, cultivation and related conveyance expenses incurred in managing those lands were also allowable as business deductions. The reference was answered entirely in favour of the assessee. Case-Laws Income Tax Fri, 15 Jan 1937 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=276205