https://www.taxtmi.com/caselaws?id=338930 Supplier credits linked to selecting aircraft engines and the acquisition of leased aircraft are capital receipts under the purpose test; netting them against lease rentals does not make them revenue income. Supplementary lease rent remains exempt where the lessor does not supply spares, facilities or services connected with the leased aircraft, so no tax-deduction obligation arises and disallowance for non-deduction does not apply. For expenditure relating to exempt income, interest directly attributable to specific taxable or business borrowings must be excluded from apportionment; the interest computation requires fresh examination. en-us Fri, 18 Nov 2016 00:00:00 +0530 Wed, 15 Feb 2017 07:37:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=338930 Supplier credits linked to selecting aircraft engines and the acquisition of leased aircraft are capital receipts under the purpose test; netting them against lease rentals does not make them revenue income. Supplementary lease rent remains exempt where the lessor does not supply spares, facilities or services connected with the leased aircraft, so no tax-deduction obligation arises and disallowance for non-deduction does not apply. For expenditure relating to exempt income, interest directly attributable to specific taxable or business borrowings must be excluded from apportionment; the interest computation requires fresh examination. Case-Laws Income Tax Fri, 18 Nov 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=338930