https://www.taxtmi.com/caselaws?id=39919 Interest on fixed deposits made from branch profits was held taxable because the deposits formed part of an integrated scheme to bring funds into the taxable territories for lending there. Section 42 of the Indian Income-tax Act, 1922 deems income to arise in the taxable territories where money is lent at interest outside those territories and, under the transaction, is brought in cash or in kind. The Tribunal's findings of effective control over the bank, branch operations designed to support the mills, and deposits made with knowledge that loans would be advanced in British India brought the arrangement within the deeming provision, making the interest taxable against the assessee-companies. en-us Tue, 25 Oct 1966 00:00:00 +0530 Tue, 23 May 2017 10:34:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39919 Interest on fixed deposits made from branch profits was held taxable because the deposits formed part of an integrated scheme to bring funds into the taxable territories for lending there. Section 42 of the Indian Income-tax Act, 1922 deems income to arise in the taxable territories where money is lent at interest outside those territories and, under the transaction, is brought in cash or in kind. The Tribunal's findings of effective control over the bank, branch operations designed to support the mills, and deposits made with knowledge that loans would be advanced in British India brought the arrangement within the deeming provision, making the interest taxable against the assessee-companies. Case-Laws Income Tax Tue, 25 Oct 1966 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39919