https://www.taxtmi.com/caselaws?id=257919 The SC held that the assessee was entitled to claim the entire upfront interest paid on debentures as a deductible expenditure in the year of payment under Section 36(1)(iii) of the Act, despite treating it as deferred revenue expenditure in the books. The Court ruled that accounting entries are not conclusive for tax purposes, and the return filed claiming full deduction must be accepted by the AO. The decision emphasized that the assessee's choice to claim the expenditure in the year incurred is permissible in law and the AO cannot deny the deduction based on differing accounting treatment. The appeal was allowed in favor of the assessee. en-us Mon, 23 Mar 2015 00:00:00 +0530 Wed, 30 Jul 2025 17:04:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=257919 The SC held that the assessee was entitled to claim the entire upfront interest paid on debentures as a deductible expenditure in the year of payment under Section 36(1)(iii) of the Act, despite treating it as deferred revenue expenditure in the books. The Court ruled that accounting entries are not conclusive for tax purposes, and the return filed claiming full deduction must be accepted by the AO. The decision emphasized that the assessee's choice to claim the expenditure in the year incurred is permissible in law and the AO cannot deny the deduction based on differing accounting treatment. The appeal was allowed in favor of the assessee. Case-Laws Income Tax Mon, 23 Mar 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=257919