1946 (2) TMI 10

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....pondent. JUDGMENT  (Judgment of the Court was delivered by the Honourable the Chief Justice.) The assessee is a Nattukottai Chetti who at all material times was carrying on a money-lending business in Rangoon. He guaranteed a loan granted by a bank in Rangoon to the Chettiar firm of S.A.RM. and as the loan was not repaid by the borrower, he was called upon to make good the amount, Rs....

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....tor for his own essential borrowings. The assessee in this case borrowed money on the guarantee of others and in turn stood surety for other Chettiars. In these circumstances, the Tribunal considered that the sum of Rs. 19,670 which the assessee was called upon to pay fell under Section 10(2)(xii), that is, it was an expenditure (not being in the nature of capital expenditure or personal expenses)....