https://www.taxtmi.com/caselaws?id=330413 Processing fees paid for acquiring term loans and expenses such as upfront fees and brokerage for issuing non-convertible debentures were in dispute as to whether they were capital or revenue. Applying SC precedent that expenditure incurred for raising loans/debentures is revenue irrespective of loan tenure or purpose, and that borrowing is incidental to business and does not create an enduring asset, the Tribunal held both categories of fees deductible as business expenditure; consequentially, no disallowance arose under s.36(1)(iii) on the facts. Separately, for s.10A, following jurisdictional HC, the Tribunal held the deduction must be allowed while computing business profits in the first instance, without setting off brought-forward unabsorbed losses against profits of the eligible unit; the assessee succeeded on this issue. en-us Wed, 20 Jul 2016 00:00:00 +0530 Wed, 17 Dec 2025 16:20:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=330413 Processing fees paid for acquiring term loans and expenses such as upfront fees and brokerage for issuing non-convertible debentures were in dispute as to whether they were capital or revenue. Applying SC precedent that expenditure incurred for raising loans/debentures is revenue irrespective of loan tenure or purpose, and that borrowing is incidental to business and does not create an enduring asset, the Tribunal held both categories of fees deductible as business expenditure; consequentially, no disallowance arose under s.36(1)(iii) on the facts. Separately, for s.10A, following jurisdictional HC, the Tribunal held the deduction must be allowed while computing business profits in the first instance, without setting off brought-forward unabsorbed losses against profits of the eligible unit; the assessee succeeded on this issue. Case-Laws Income Tax Wed, 20 Jul 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=330413