TMI Blog1928 (4) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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 put into Ramaswami Co. That branch of their business was unsuccessful. It had to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 their business is doing, whether it is making a profit or a loss, so that, if one p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 that borrowed capital (existing or lost) during the year of assessment. We, therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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