https://www.taxtmi.com/caselaws?id=168285 The article clarifies that interest on capital borrowed is deductible where the capital was borrowed and used for the purposes of the business in the year of account; the statutory language focuses on use of capital rather than use or profitability of the asset acquired. It applies principles treating expenditure incurred for commercial expediency and the ''wholly and exclusively'' test, and distinguishes clause requiring depreciation, which expressly conditions allowance on asset use. Operatively, interest remains allowable under the statutory clause even if the capital asset financed was not used during that year. en-us Mon, 24 Mar 1958 00:00:00 +0530 Sat, 11 May 2024 12:30:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=168285 The article clarifies that interest on capital borrowed is deductible where the capital was borrowed and used for the purposes of the business in the year of account; the statutory language focuses on use of capital rather than use or profitability of the asset acquired. It applies principles treating expenditure incurred for commercial expediency and the ''wholly and exclusively'' test, and distinguishes clause requiring depreciation, which expressly conditions allowance on asset use. Operatively, interest remains allowable under the statutory clause even if the capital asset financed was not used during that year. Case-Laws Income Tax Mon, 24 Mar 1958 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=168285