1927 (12) TMI 5

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....a business by a Nattukkottai Chetti at various places of which the only two relevant ones are Madras, where his head office was, and Ipoh, a place in the Fedrated Malay States. The short point is this. Money was borrowed by the assessee in Madras and of course interest has to be paid on it in Madras. Part of that money--it does not matter how much because that is a question of fact for the Commiss....

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.... and then comes (iii) in respect of capital borrowed for the purposes of the business where the payment of interest thereon is not in any way dependent on the earning of profits, the amount of the interest paid. 3. The only words that it is necessary to consider for the, purpose of this case are the words at the beginning "in respect of capital borrowed for the purposes of the busine....

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....neris for the reason that "the business" is only the business in British India, the income of which alone is liable to be taxed. With the argument that the capital borrowed for the purposes of the business will include any sum of money which at the moment it was borrowed was put into the coffers of the particular business in British India and that therefore it did not matter if the whole of it was....

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....eat the business as of that nature in Madras it would be necessary to find that all the profits of the Ipoh branch were automatically remitted to Madras and came here and that the Madras office was notionally running in its Madras Office the business at Ipoh. There is no evidence of that; on the contrary the finding of the Commissioner is that no part of the profits made during this year at Ipoh w....