https://www.taxtmi.com/caselaws?id=279789 The High Court held that interest paid by a company to another on loans constitutes profits accruing to the lending company, subject to Income Tax. The borrowing company was not considered the agent of the lending company for tax assessment. The relationship between the companies as borrower and lender dictated the tax liability. The Privy Council overturned the High Court's decision, deeming the borrowing company as the agent of the lending company for tax purposes. The appeal was allowed, and the Commissioner's judgment was restored, with costs awarded against the borrowing company. en-us Tue, 26 Nov 1929 00:00:00 +0530 Fri, 05 Apr 2019 11:01:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=279789 The High Court held that interest paid by a company to another on loans constitutes profits accruing to the lending company, subject to Income Tax. The borrowing company was not considered the agent of the lending company for tax assessment. The relationship between the companies as borrower and lender dictated the tax liability. The Privy Council overturned the High Court's decision, deeming the borrowing company as the agent of the lending company for tax purposes. The appeal was allowed, and the Commissioner's judgment was restored, with costs awarded against the borrowing company. Case-Laws Income Tax Tue, 26 Nov 1929 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=279789