https://www.taxtmi.com/caselaws?id=178513 Under the income-tax provision allowing deduction of interest on capital borrowed for business, the only requirements were genuine borrowing, business purpose, and actual payment of interest. Once those conditions were met, the revenue could not import a separate reasonableness test or reduce the deduction because it considered the agreed rate excessive or unsupported by business considerations. The court held that fiscal statutes must be applied strictly, and where the law permitted the amount actually paid, no partial disallowance could be made by analogy to other allowance provisions. The assessee was therefore entitled to deduction of the full interest paid. en-us Sat, 05 Dec 1964 00:00:00 +0530 Mon, 08 Feb 2016 10:15:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=178513 Under the income-tax provision allowing deduction of interest on capital borrowed for business, the only requirements were genuine borrowing, business purpose, and actual payment of interest. Once those conditions were met, the revenue could not import a separate reasonableness test or reduce the deduction because it considered the agreed rate excessive or unsupported by business considerations. The court held that fiscal statutes must be applied strictly, and where the law permitted the amount actually paid, no partial disallowance could be made by analogy to other allowance provisions. The assessee was therefore entitled to deduction of the full interest paid. Case-Laws Income Tax Sat, 05 Dec 1964 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=178513