https://www.taxtmi.com/caselaws?id=18681 Interest paid to the State Government on instalments linked to allotment of an industrial unit was held deductible as business expenditure under section 37(1) of the Income-tax Act, 1961. The assessee had already commenced business, and the liability arose during the course of carrying on that business rather than as interest on capital borrowed for acquisition of money. The payment was treated as a business outgo, and not as capital or personal expenditure, because it was laid out wholly for business purposes. The question was answered in favour of the assessee and against the Revenue. en-us Sat, 13 May 1995 00:00:00 +0530 Sat, 31 Oct 2009 13:07:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=18681 Interest paid to the State Government on instalments linked to allotment of an industrial unit was held deductible as business expenditure under section 37(1) of the Income-tax Act, 1961. The assessee had already commenced business, and the liability arose during the course of carrying on that business rather than as interest on capital borrowed for acquisition of money. The payment was treated as a business outgo, and not as capital or personal expenditure, because it was laid out wholly for business purposes. The question was answered in favour of the assessee and against the Revenue. Case-Laws Income Tax Sat, 13 May 1995 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=18681