https://www.taxtmi.com/caselaws?id=174450 Payments characterized as interest on borrowed funds used to acquire shares and payments diverted from an office allowance were held non-deductible because they either created a capital asset or formed part of a pre-arranged diversion to related parties lacking a real business nexus. The legal principle applied is that expenditure must be incurred wholly and exclusively for carrying on the business in the relevant accounting year to qualify as revenue deduction; where the transaction yields an enduring advantage or is a sham/related party diversion without genuine commercial purpose, the expenditure is not allowable as a revenue deduction. en-us Thu, 10 May 1962 00:00:00 +0530 Thu, 08 Oct 2015 14:34:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=174450 Payments characterized as interest on borrowed funds used to acquire shares and payments diverted from an office allowance were held non-deductible because they either created a capital asset or formed part of a pre-arranged diversion to related parties lacking a real business nexus. The legal principle applied is that expenditure must be incurred wholly and exclusively for carrying on the business in the relevant accounting year to qualify as revenue deduction; where the transaction yields an enduring advantage or is a sham/related party diversion without genuine commercial purpose, the expenditure is not allowable as a revenue deduction. Case-Laws Income Tax Thu, 10 May 1962 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=174450