https://www.taxtmi.com/caselaws?id=38168 Interest on borrowed capital used to discharge income-tax and excess profits tax liabilities was held not deductible in computing business profits because section 10(2)(iii) requires the borrowing to be used for business purposes, and tax is an application of profits rather than expenditure incurred to earn them; the disallowance was upheld. The revenue also failed to prove that a credit of 77,000 represented undisclosed income, as the surrounding circumstances were equivocal and did not reliably establish income from undisclosed sources; the addition was deleted. en-us Thu, 30 Jun 1977 00:00:00 +0530 Sat, 03 Apr 2010 15:40:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38168 Interest on borrowed capital used to discharge income-tax and excess profits tax liabilities was held not deductible in computing business profits because section 10(2)(iii) requires the borrowing to be used for business purposes, and tax is an application of profits rather than expenditure incurred to earn them; the disallowance was upheld. The revenue also failed to prove that a credit of 77,000 represented undisclosed income, as the surrounding circumstances were equivocal and did not reliably establish income from undisclosed sources; the addition was deleted. Case-Laws Income Tax Thu, 30 Jun 1977 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38168