https://www.taxtmi.com/caselaws?id=17643 The High Court held that the bank guarantee commission paid by the assessee was a revenue expenditure and not capital in nature. The Court allowed the deduction of Rs. 78,913, ruling in favor of the assessee and against the Revenue. The expenditure was considered closely related to the business operations and did not result in the creation of an enduring asset. The Court emphasized that the guarantee commission was incurred during the subsistence of the business and qualified as revenue expenditure under section 37 of the Income-tax Act. en-us Fri, 13 Sep 1996 00:00:00 +0530 Wed, 23 Sep 2009 18:01:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=17643 The High Court held that the bank guarantee commission paid by the assessee was a revenue expenditure and not capital in nature. The Court allowed the deduction of Rs. 78,913, ruling in favor of the assessee and against the Revenue. The expenditure was considered closely related to the business operations and did not result in the creation of an enduring asset. The Court emphasized that the guarantee commission was incurred during the subsistence of the business and qualified as revenue expenditure under section 37 of the Income-tax Act. Case-Laws Income Tax Fri, 13 Sep 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=17643