https://www.taxtmi.com/caselaws?id=292302 An isolated loan transaction by a resident debtor to a non-resident creditor does not, by itself, create a business connection in British India under Section 42 of the Indian Income-tax Act, 1922. The debt was treated as a chose in action, not property in British India, so interest on the loan was not brought to tax on that basis. A debtor who merely pays interest is also not a person "through whom" the non-resident receives income for Section 43 purposes. Accordingly, the borrower could not be treated as the non-resident's statutory agent for assessment of the non-resident's other income in Bombay. en-us Tue, 28 Feb 1933 00:00:00 +0530 Fri, 18 Dec 2020 14:32:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=292302 An isolated loan transaction by a resident debtor to a non-resident creditor does not, by itself, create a business connection in British India under Section 42 of the Indian Income-tax Act, 1922. The debt was treated as a chose in action, not property in British India, so interest on the loan was not brought to tax on that basis. A debtor who merely pays interest is also not a person "through whom" the non-resident receives income for Section 43 purposes. Accordingly, the borrower could not be treated as the non-resident's statutory agent for assessment of the non-resident's other income in Bombay. Case-Laws Income Tax Tue, 28 Feb 1933 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=292302