https://www.taxtmi.com/caselaws?id=178337 The High Court upheld the Tribunal's decision, allowing the deduction claimed by the assessee for interest paid to trade creditors under section 37(1) of the Income Tax Act. The Court emphasized that the failure to charge interest from trade debtors did not affect the legitimacy of the interest payment to creditors for business purposes. It was held that no substantial question of law arose, dismissing the revenue's appeal. The judgment clarified that the reasons for paying interest to creditors and not charging interest from debtors are distinct and should not impact the allowance of a valid deduction. en-us Mon, 17 Apr 2006 00:00:00 +0530 Tue, 02 Feb 2016 15:43:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=178337 The High Court upheld the Tribunal's decision, allowing the deduction claimed by the assessee for interest paid to trade creditors under section 37(1) of the Income Tax Act. The Court emphasized that the failure to charge interest from trade debtors did not affect the legitimacy of the interest payment to creditors for business purposes. It was held that no substantial question of law arose, dismissing the revenue's appeal. The judgment clarified that the reasons for paying interest to creditors and not charging interest from debtors are distinct and should not impact the allowance of a valid deduction. Case-Laws Income Tax Mon, 17 Apr 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=178337