https://www.taxtmi.com/caselaws?id=277214 Interest paid on the unpaid purchase price of capital assets was held to be capital in nature and not deductible under section 10(2)(iii), section 10(2)(xv), or section 10(1) of the Indian Income-tax Act, 1922. The court reasoned that the payment related to the deferred acquisition cost of the assets, not to borrowed capital, so it could not qualify as interest on borrowings. As part of the cost of acquiring a capital asset, it was also not expenditure laid out wholly and exclusively for business, and it could not be treated as a permissible revenue deduction. The reference was answered in the negative and against the assessee. en-us Thu, 09 Aug 1962 00:00:00 +0530 Thu, 29 Nov 2018 10:51:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=277214 Interest paid on the unpaid purchase price of capital assets was held to be capital in nature and not deductible under section 10(2)(iii), section 10(2)(xv), or section 10(1) of the Indian Income-tax Act, 1922. The court reasoned that the payment related to the deferred acquisition cost of the assets, not to borrowed capital, so it could not qualify as interest on borrowings. As part of the cost of acquiring a capital asset, it was also not expenditure laid out wholly and exclusively for business, and it could not be treated as a permissible revenue deduction. The reference was answered in the negative and against the assessee. Case-Laws Income Tax Thu, 09 Aug 1962 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=277214