https://www.taxtmi.com/caselaws?id=19315 Estate duty paid by a controlled company on property transferred by the deceased was treated as deductible business expenditure because the liability was statutorily referable to assets used in the business and had a real nexus with the carrying on of that business. On the same reasoning, interest on borrowings raised to meet that estate duty was also deductible, as it was incurred to discharge a business-related outgoing and was incidental to the business. The note applies the principle that expenditure and related financing costs are allowable under section 37 when they are directly connected with business operations and not merely personal or disconnected payments. en-us Tue, 08 Nov 1994 00:00:00 +0530 Thu, 05 Nov 2009 13:22:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=19315 Estate duty paid by a controlled company on property transferred by the deceased was treated as deductible business expenditure because the liability was statutorily referable to assets used in the business and had a real nexus with the carrying on of that business. On the same reasoning, interest on borrowings raised to meet that estate duty was also deductible, as it was incurred to discharge a business-related outgoing and was incidental to the business. The note applies the principle that expenditure and related financing costs are allowable under section 37 when they are directly connected with business operations and not merely personal or disconnected payments. Case-Laws Income Tax Tue, 08 Nov 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=19315