https://www.taxtmi.com/caselaws?id=68983 The Tribunal upheld the allowance of the interest deduction despite the contravention of section 58A of the Companies Act. The decision was based on the necessity of borrowings for business purposes, the liability to pay interest even in void contracts, and the distinction between penalty payments and business expenditures. The Tribunal emphasized the business nature of the interest liability and confirmed the Commissioner's decision to allow the deduction, dismissing the revenue's appeal. en-us Wed, 23 May 1984 00:00:00 +0530 Mon, 04 Apr 2011 12:41:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=68983 The Tribunal upheld the allowance of the interest deduction despite the contravention of section 58A of the Companies Act. The decision was based on the necessity of borrowings for business purposes, the liability to pay interest even in void contracts, and the distinction between penalty payments and business expenditures. The Tribunal emphasized the business nature of the interest liability and confirmed the Commissioner's decision to allow the deduction, dismissing the revenue's appeal. Case-Laws Income Tax Wed, 23 May 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=68983