https://www.taxtmi.com/caselaws?id=49336 Interest on borrowed capital used in an indivisible banking business remained deductible as business expenditure, even where part of the borrowed funds related to tax-free securities. The statute was applied according to its language, without importing an additional requirement that the borrowing must be traceable only to taxable income. The securities were treated as part of the same banking business, and profits and losses from their dealings were included in assessment. The deduction was therefore allowable because the expenditure was incurred wholly and exclusively for the purposes of the business, and the reference question was answered in favour of the assessee. en-us Mon, 26 Oct 1964 00:00:00 +0530 Mon, 20 Oct 2014 15:54:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49336 Interest on borrowed capital used in an indivisible banking business remained deductible as business expenditure, even where part of the borrowed funds related to tax-free securities. The statute was applied according to its language, without importing an additional requirement that the borrowing must be traceable only to taxable income. The securities were treated as part of the same banking business, and profits and losses from their dealings were included in assessment. The deduction was therefore allowable because the expenditure was incurred wholly and exclusively for the purposes of the business, and the reference question was answered in favour of the assessee. Case-Laws Income Tax Mon, 26 Oct 1964 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49336