https://www.taxtmi.com/caselaws?id=15093 The court ruled in favor of the Department regarding the interpretation of section 40A(8) of the Income-tax Act, 1961, stating that net expenditure cannot be considered after setting off interest income. Conversely, the court sided with the assessee in allowing the deduction of sales tax liability as a legitimate expense under the mercantile system of accounting, despite the corresponding amount collected being taxed. This judgment clarifies the treatment of interest expenditure and sales tax liability for the parties involved. en-us Wed, 25 Mar 1998 00:00:00 +0530 Fri, 31 Jul 2009 18:50:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=15093 The court ruled in favor of the Department regarding the interpretation of section 40A(8) of the Income-tax Act, 1961, stating that net expenditure cannot be considered after setting off interest income. Conversely, the court sided with the assessee in allowing the deduction of sales tax liability as a legitimate expense under the mercantile system of accounting, despite the corresponding amount collected being taxed. This judgment clarifies the treatment of interest expenditure and sales tax liability for the parties involved. Case-Laws Income Tax Wed, 25 Mar 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=15093