https://www.taxtmi.com/caselaws?id=277210 Whether interest on capital borrowed and invested outside the taxing territory is deductible: the document clarifies that an interest deduction is confined to capital borrowed for the purposes of a business carried on so as to earn profits chargeable to tax within the territory; capital borrowed and employed abroad, producing income not brought into the territory, does not form part of a business capable of earning taxable profits domestically and therefore disqualifies the interest deduction under section 10(2)(iii). The conclusion: deduction not allowable on the facts presented. en-us Thu, 20 Aug 1931 00:00:00 +0530 Thu, 29 Nov 2018 10:18:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=277210 Whether interest on capital borrowed and invested outside the taxing territory is deductible: the document clarifies that an interest deduction is confined to capital borrowed for the purposes of a business carried on so as to earn profits chargeable to tax within the territory; capital borrowed and employed abroad, producing income not brought into the territory, does not form part of a business capable of earning taxable profits domestically and therefore disqualifies the interest deduction under section 10(2)(iii). The conclusion: deduction not allowable on the facts presented. Case-Laws Income Tax Thu, 20 Aug 1931 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=277210