https://www.taxtmi.com/caselaws?id=188807 Interest on unpaid instalments under a building agreement for acquisition of leasehold rights was not treated as interest on capital borrowed for business, because the deferred price did not create a loan or borrowed capital. The same interest was also not deductible as expenditure wholly and exclusively laid out for the business, since it related to acquisition of the premises rather than carrying on the cinema business. It further did not qualify under the property income provision, as no subsisting capital charge existed on the leasehold property under the relevant statutes. The claims were therefore rejected against the assessee. en-us Thu, 09 Nov 1944 00:00:00 +0630 Sat, 17 Dec 2016 11:22:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=188807 Interest on unpaid instalments under a building agreement for acquisition of leasehold rights was not treated as interest on capital borrowed for business, because the deferred price did not create a loan or borrowed capital. The same interest was also not deductible as expenditure wholly and exclusively laid out for the business, since it related to acquisition of the premises rather than carrying on the cinema business. It further did not qualify under the property income provision, as no subsisting capital charge existed on the leasehold property under the relevant statutes. The claims were therefore rejected against the assessee. Case-Laws Income Tax Thu, 09 Nov 1944 00:00:00 +0630 https://www.taxtmi.com/caselaws?id=188807