https://www.taxtmi.com/caselaws?id=265260 Expenditure incurred to discharge a corporate guarantee given for a subsidiary was treated as a deductible business outlay where it was connected with the assessee's business objects and satisfied the test of commercial expediency. The analysis notes that such expenditure may be allowable if it is incidental to the business, and that the absence of a direct income link is not decisive. Relying on the assessee's earlier year ruling, the Tribunal followed the consistent view that the guarantee obligation arose in the course of business and allowed the claim, rejecting the Revenue's challenge. en-us Fri, 28 Aug 2015 00:00:00 +0530 Fri, 09 Oct 2015 07:41:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=265260 Expenditure incurred to discharge a corporate guarantee given for a subsidiary was treated as a deductible business outlay where it was connected with the assessee's business objects and satisfied the test of commercial expediency. The analysis notes that such expenditure may be allowable if it is incidental to the business, and that the absence of a direct income link is not decisive. Relying on the assessee's earlier year ruling, the Tribunal followed the consistent view that the guarantee obligation arose in the course of business and allowed the claim, rejecting the Revenue's challenge. Case-Laws Income Tax Fri, 28 Aug 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=265260