https://www.taxtmi.com/caselaws?id=15368 The High Court upheld the Tribunal's decision to set aside the Commissioner's order regarding the treatment of interest paid on term loans as revenue expenditure under Explanation 8 to section 43(1) of the Income-tax Act, 1961. The Court agreed with the Tribunal that the interest was allowable as revenue expenditure as it was incurred for the existing business, rejecting the Revenue's argument to capitalize the interest. The Court emphasized that the interest was for modernization and improvement of productivity related to the existing business, in line with previous determinations, and dismissed the petition with costs. en-us Thu, 13 Jan 2000 00:00:00 +0530 Thu, 06 Aug 2009 11:21:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=15368 The High Court upheld the Tribunal's decision to set aside the Commissioner's order regarding the treatment of interest paid on term loans as revenue expenditure under Explanation 8 to section 43(1) of the Income-tax Act, 1961. The Court agreed with the Tribunal that the interest was allowable as revenue expenditure as it was incurred for the existing business, rejecting the Revenue's argument to capitalize the interest. The Court emphasized that the interest was for modernization and improvement of productivity related to the existing business, in line with previous determinations, and dismissed the petition with costs. Case-Laws Income Tax Thu, 13 Jan 2000 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=15368