Commissioner Of Income Tax V. Bank Of Chettinad

1946  Present: Soertsz A. C. J. and Rose

COMMISSIONER OF INCOME TAX Appellant, and
BANK OF CHETTINAD, Respondent.

CASE STATED UNDER SECTION 74 OF THE INCOME TAX
ORDINANCE, NO. 84 (INTY.).

Income Tax-Non-resident Bank-Loan to Ceylon Branch ? Claim of deduction of interest- Income Tax Ordinance (cap. 188), s. 90, Rule 1.

Where the Chettinad Bank which had its Head Office at Rangoon and a branch at Colombo lent money to the Colombo Branch and the latter claimed that it should be allowed a deduction, in the assessment of its Income Tax, of the amount of the interest on the loan, under Rule 1 of section 90 of the Income Tax Ordinance-
    
Held, that it was for the assesses to establish affirmatively that both the Head office and the Ceylon Branch carried on the business of banking.
   
A bank contemplated by the Rule is a company or person carrying on as its or his principal business the accepting of deposits of money on current account or otherwise, subject to withdrawal by cheque, draft or order.

CASE stated under the provisions of the Income tax Ordinance for the opinion of the Supreme court upon the app

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