https://www.taxtmi.com/caselaws?id=19630 Interest on a bank loan taken to acquire house property for a company's business was treated as deductible business expenditure, even though the property was not put to actual business use in the relevant year. The Tribunal's finding that the acquisition was for business purposes was accepted as a finding of fact, and the absence of immediate use did not alter the business character of the borrowing. The principle applied was that expenditure incurred for raising a loan is allowable on revenue account as business expenditure, regardless of whether the borrowed funds are ultimately used for capital outlay or revenue spending. The deduction was therefore allowed and the reference was answered in favour of the assessee, against the Revenue. en-us Thu, 20 Jan 1994 00:00:00 +0530 Sat, 07 Nov 2009 15:46:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=19630 Interest on a bank loan taken to acquire house property for a company's business was treated as deductible business expenditure, even though the property was not put to actual business use in the relevant year. The Tribunal's finding that the acquisition was for business purposes was accepted as a finding of fact, and the absence of immediate use did not alter the business character of the borrowing. The principle applied was that expenditure incurred for raising a loan is allowable on revenue account as business expenditure, regardless of whether the borrowed funds are ultimately used for capital outlay or revenue spending. The deduction was therefore allowed and the reference was answered in favour of the assessee, against the Revenue. Case-Laws Income Tax Thu, 20 Jan 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=19630