https://www.taxtmi.com/caselaws?id=13910 Guarantee commission paid to a director for providing a bank-loan guarantee was treated as an allowable business deduction under the governing precedent, so its disallowance could not be sustained. Interest paid on arrears of cane purchase tax was likewise treated as allowable revenue expenditure under the applicable principle, rendering the disallowance unjustified. Both issues were resolved in favour of the assessee on the basis that expenditure recognised by binding precedent as a permissible business deduction or revenue outgo cannot be disallowed on the stated facts. en-us Wed, 13 Dec 2000 00:00:00 +0530 Sat, 04 Jul 2009 18:37:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=13910 Guarantee commission paid to a director for providing a bank-loan guarantee was treated as an allowable business deduction under the governing precedent, so its disallowance could not be sustained. Interest paid on arrears of cane purchase tax was likewise treated as allowable revenue expenditure under the applicable principle, rendering the disallowance unjustified. Both issues were resolved in favour of the assessee on the basis that expenditure recognised by binding precedent as a permissible business deduction or revenue outgo cannot be disallowed on the stated facts. Case-Laws Income Tax Wed, 13 Dec 2000 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=13910