https://www.taxtmi.com/caselaws?id=277214 Interest payable on deferred purchase instalments is treated as part of the cost of acquisition of capital assets rather than interest on borrowed capital; accordingly such payments are capital in nature and not deductible as business interest or as miscellaneous revenue expenditure. Expenditures and payments incident to acquisition form capital expenditure and cannot be converted into revenue deductions under the commercial expenditure test. The legal effect is that interest on unpaid purchase price is not allowable as a deduction under provisions permitting interest or general revenue deductions. 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 payable on deferred purchase instalments is treated as part of the cost of acquisition of capital assets rather than interest on borrowed capital; accordingly such payments are capital in nature and not deductible as business interest or as miscellaneous revenue expenditure. Expenditures and payments incident to acquisition form capital expenditure and cannot be converted into revenue deductions under the commercial expenditure test. The legal effect is that interest on unpaid purchase price is not allowable as a deduction under provisions permitting interest or general revenue deductions. Case-Laws Income Tax Thu, 09 Aug 1962 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=277214