https://www.taxtmi.com/caselaws?id=3486 The Supreme Court allowed the deduction of interest as revenue expenditure under Section 37 of the Income-tax Act, disagreeing with the High Court's reasoning that the expenditure did not fall under Section 37(1) provisions. The Court emphasized that if sale proceeds from scrap material were treated as business income, the corresponding interest payment should also be considered a business expenditure. The Court also upheld the Tribunal's decision regarding the nature of expenditure for tax purposes, favoring the assessee's position and emphasizing that the interest payment should be considered a revenue expenditure. en-us Wed, 12 Mar 2008 00:00:00 +0530 Mon, 28 Jul 2008 12:33:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=3486 The Supreme Court allowed the deduction of interest as revenue expenditure under Section 37 of the Income-tax Act, disagreeing with the High Court's reasoning that the expenditure did not fall under Section 37(1) provisions. The Court emphasized that if sale proceeds from scrap material were treated as business income, the corresponding interest payment should also be considered a business expenditure. The Court also upheld the Tribunal's decision regarding the nature of expenditure for tax purposes, favoring the assessee's position and emphasizing that the interest payment should be considered a revenue expenditure. Case-Laws Income Tax Wed, 12 Mar 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=3486