https://www.taxtmi.com/caselaws?id=5147 Expenditure incurred to secure overdraft facilities for business was treated as revenue expenditure because it related only to obtaining the use of money for a limited period. The governing principle applied was that borrowing is incidental to business, and payment for financial accommodation does not become capital outlay merely because the borrowing supports expansion or working capital needs. No asset or enduring advantage was created, and the purpose of the loan was not decisive. The expenditure was therefore allowable as a deduction under section 10(2)(xv) of the Income-tax Act, 1922. en-us Thu, 25 Jul 1968 00:00:00 +0530 Thu, 20 Nov 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5147 Expenditure incurred to secure overdraft facilities for business was treated as revenue expenditure because it related only to obtaining the use of money for a limited period. The governing principle applied was that borrowing is incidental to business, and payment for financial accommodation does not become capital outlay merely because the borrowing supports expansion or working capital needs. No asset or enduring advantage was created, and the purpose of the loan was not decisive. The expenditure was therefore allowable as a deduction under section 10(2)(xv) of the Income-tax Act, 1922. Case-Laws Income Tax Thu, 25 Jul 1968 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5147