AI Drafter - (New and Powerful) 
Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter. 
TaxTMI 
TaxTMI 
1928 (4) TMI 4
X X X X Extracts X X X X
X X X X Extracts X X X X
....hetti business of banking and money-lending. They also trade in other ways and under the style of Ramaswami & Co., did a considerable piece-goods business in Madras which was opened in 1910. A.L.A.R'! traded almost entirely on borrowed capital. The question is whether they are entitled to deduct from their Income Tax assessment interest paid on that part of the borrowed capital which they had ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....td., to take a familiar instance, carry on the business of Chemists and Druggists at one end of their buildings and that of haberdashers at the other end, and for all I know they may for their own purpose keep the accounts of these two branches of their activities separate. It is obviously important for a modern multiple store like Whiteleys or Herrods or Spencers here to know how each branch of t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rposes of business and was employed in the business for its purposes until it was lost. Nevertheless interest had to be paid on it and the test seems to us to be not whether it continued to be available for the purposes of the business during the year of assessment, but whether it was in its origin money borrowed as capital for the assessees' business and whether interest was in fact paid on t....