https://www.taxtmi.com/caselaws?id=19211 Interest paid on instalments of betterment charges was treated as part of a capital liability, because the charges were levied on the enhanced value of land and gave the assessee an enduring advantage. The option to discharge the amount in instalments under section 74(1) of the Bombay Town Planning Act, 1954 did not alter that character, and the statutory interest attached to deferred payment lacked a direct nexus with ordinary business operations. The borrowing-expense principle did not apply, as the payment was not analogous to a business loan. The interest was therefore not allowable as a revenue deduction. en-us Fri, 04 Nov 1994 00:00:00 +0530 Mon, 04 Apr 2011 13:06:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=19211 Interest paid on instalments of betterment charges was treated as part of a capital liability, because the charges were levied on the enhanced value of land and gave the assessee an enduring advantage. The option to discharge the amount in instalments under section 74(1) of the Bombay Town Planning Act, 1954 did not alter that character, and the statutory interest attached to deferred payment lacked a direct nexus with ordinary business operations. The borrowing-expense principle did not apply, as the payment was not analogous to a business loan. The interest was therefore not allowable as a revenue deduction. Case-Laws Income Tax Fri, 04 Nov 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=19211