https://www.taxtmi.com/caselaws?id=350448 The High Court of Gujarat ruled in favor of the assessee on both issues. Regarding the disallowance of interest on Secured Promissory Notes, the court upheld the deduction of interest paid on capital borrowed for business needs under section 36(1)(iii) of the Income Tax Act. Concerning the treatment of expenditure related to Soda Ash and Lab Front projects, the court emphasized that in cases of expanding an existing business, the nature of borrowings as capital or revenue expenditure is irrelevant. The court allowed the Tax Appeal, providing detailed reasoning based on legal precedents and interpretations of relevant sections of the Income Tax Act. en-us Wed, 11 Oct 2017 00:00:00 +0530 Thu, 04 Jan 2018 14:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=350448 The High Court of Gujarat ruled in favor of the assessee on both issues. Regarding the disallowance of interest on Secured Promissory Notes, the court upheld the deduction of interest paid on capital borrowed for business needs under section 36(1)(iii) of the Income Tax Act. Concerning the treatment of expenditure related to Soda Ash and Lab Front projects, the court emphasized that in cases of expanding an existing business, the nature of borrowings as capital or revenue expenditure is irrelevant. The court allowed the Tax Appeal, providing detailed reasoning based on legal precedents and interpretations of relevant sections of the Income Tax Act. Case-Laws Income Tax Wed, 11 Oct 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=350448