Revenue expenditure deduction upheld for guarantee commission and deferred-payment interest on the same binding legal principle.

Guarantee commission and interest on deferred payment were treated as revenue expenditure deductible in computing total income. The SC followed its earlier decision in the same assessee's matter, together with an allied decision on similar facts, and regarded that binding position as decisive of the issue. On that basis, the payments were allowed as deductions and the question was answered in favour of the assessee.

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Issues: Whether guarantee commission and interest on deferred payment were revenue expenditure deductible in computing the assessee's total income.

Analysis: The Court followed its earlier decision on the same assessee and the allied decision in similar facts, where such expenditure had been held to be revenue in nature and therefore allowable as deduction. The appeal involved the same legal question, and the prior binding position was treated as decisive.

Conclusion: The payments were held to be revenue expenditure and allowable as deductions. The issue was answered in favour of the assessee.

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