https://www.taxtmi.com/caselaws?id=8399 Interest paid on arrears of cane cess arising from delayed compliance with a statutory levy was held not deductible as revenue expenditure. The court reasoned that the liability did not arise from borrowed capital or any consensual lending arrangement, so it fell outside interest on borrowed capital under section 10(2)(iii) of the Indian Income-tax Act, 1922. It also was not an outgoing laid out wholly and exclusively for business, or otherwise deductible in computing business profits, because it resulted from breach of a statutory obligation and was not incidental to carrying on the business. The interest was therefore not allowable as a business deduction. en-us Mon, 25 Oct 1971 00:00:00 +0530 Sat, 11 Apr 2009 11:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8399 Interest paid on arrears of cane cess arising from delayed compliance with a statutory levy was held not deductible as revenue expenditure. The court reasoned that the liability did not arise from borrowed capital or any consensual lending arrangement, so it fell outside interest on borrowed capital under section 10(2)(iii) of the Indian Income-tax Act, 1922. It also was not an outgoing laid out wholly and exclusively for business, or otherwise deductible in computing business profits, because it resulted from breach of a statutory obligation and was not incidental to carrying on the business. The interest was therefore not allowable as a business deduction. Case-Laws Income Tax Mon, 25 Oct 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8399