Report No. 12
20. Banking company.-
(1) In the case of a banking company-
(i) the sum to be regarded as a sum reasonably expended for the purpose referred to in clause (i) of section 19 [section regarding deductions] shall be an amount bearing to the aggregate of its expenses as are admissible under the provisions of sections 30, 31, 36 and 37, other than clauses (3), (5) and (6) of section 36, [sub-section (2) of section 10 (other than clauses (iii), (vi), (via), (vib), (vii), (viii), (xi), (xii), (xiii) and (xiv) thereof)] the same proportion as the gross receipts from interest on securities (inclusive of tax deducted at source) chargeable to income-tax under section 18 [main section re: Interest on Securities] bear to the gross receipts of the company from all sources which are included in the profit and loss account of the company;
[Section 8, Expin. (a), part]
(ii). the amount to be regarded as interest payable on moneys borrowed for the purpose referred to in clause (ii) of section 19 [section regarding deductions] shall be an amount which bears to the amount of interest payable on all moneys borrowed by the company the same proportion as the gross receipts from interest on securities (inclusive of tax deducted at source) chargeable to income-tax under section 18 [main Section for interest] bear to the gross receipts from all sources which are included in the profit and loss account of the company;
[Section 8, Expin. (b), part]
(2) The expenses deducted under clauses (i) and (ii) of sub-section (1) shall not again form part of the deductions admissible under sections 30 to 37 [sub-section (2) of section 10] for the purposes of computing the income of the company under the head "Profits and gains of business, profession or vocation".
[Section 8, Expins. (a) and (b), last line]
Explanation.-For the purposes of this section, "moneys borrowed" includes moneys received by way of deposits.
[Section 8, Expin. (b), first line]
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