https://www.taxtmi.com/caselaws?id=39485 Interest paid to a non-resident vendor on unpaid ship purchase money was treated as income chargeable under the Act, so tax deduction at source under section 195 applied. Because no tax was deducted or paid under Chapter XVII-B, section 40(a)(i) barred the amount from deduction in computing business income, and section 37(1) could not be used to override that bar. The alternative claims under section 10(15)(iv)(c) and section 36(1)(iii) also failed, since the assessee had not itself incurred the relevant borrowing or foreign debt and the statutory disallowance still applied. en-us Mon, 03 Sep 1973 00:00:00 +0530 Fri, 16 Apr 2010 16:57:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39485 Interest paid to a non-resident vendor on unpaid ship purchase money was treated as income chargeable under the Act, so tax deduction at source under section 195 applied. Because no tax was deducted or paid under Chapter XVII-B, section 40(a)(i) barred the amount from deduction in computing business income, and section 37(1) could not be used to override that bar. The alternative claims under section 10(15)(iv)(c) and section 36(1)(iii) also failed, since the assessee had not itself incurred the relevant borrowing or foreign debt and the statutory disallowance still applied. Case-Laws Income Tax Mon, 03 Sep 1973 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39485