https://www.taxtmi.com/caselaws?id=12105 The SC examined the tax treatment of interest on loans for acquiring development rights in a construction project. The court held that interest paid on borrowed capital for business purposes is deductible as revenue expenditure under section 36(1)(iii), regardless of whether the loan was used to acquire a capital or revenue asset. The Commissioner's attempt to disallow the interest deduction under section 263 was rejected, and the Tribunal's original assessment allowing the deduction was upheld. en-us Wed, 15 Jan 2003 00:00:00 +0530 Wed, 14 May 2025 15:06:08 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=12105 The SC examined the tax treatment of interest on loans for acquiring development rights in a construction project. The court held that interest paid on borrowed capital for business purposes is deductible as revenue expenditure under section 36(1)(iii), regardless of whether the loan was used to acquire a capital or revenue asset. The Commissioner's attempt to disallow the interest deduction under section 263 was rejected, and the Tribunal's original assessment allowing the deduction was upheld. Case-Laws Income Tax Wed, 15 Jan 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=12105