https://www.taxtmi.com/caselaws?id=14337 The High Court held that the interest paid by the assessee in acquiring an asset on an outright basis was capital expenditure, not deductible in the computation of the assessee's business. The Court emphasized the distinction between revenue and capital expenditure, stating that expenses related to acquiring permanent assets are capital in nature. Despite business necessity and operational effectiveness, the interest expenditure was deemed capital due to its direct link to the asset's value. The Court ruled in favor of the Revenue, clarifying the treatment of such expenditures in business operations. en-us Wed, 29 Nov 2000 00:00:00 +0530 Wed, 15 Jul 2009 12:48:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=14337 The High Court held that the interest paid by the assessee in acquiring an asset on an outright basis was capital expenditure, not deductible in the computation of the assessee's business. The Court emphasized the distinction between revenue and capital expenditure, stating that expenses related to acquiring permanent assets are capital in nature. Despite business necessity and operational effectiveness, the interest expenditure was deemed capital due to its direct link to the asset's value. The Court ruled in favor of the Revenue, clarifying the treatment of such expenditures in business operations. Case-Laws Income Tax Wed, 29 Nov 2000 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=14337