https://www.taxtmi.com/caselaws?id=20144 The court ruled in favor of the Revenue regarding the capitalization of interest/discounting charges for machinery purchased under a deferred payment scheme. However, the court sided with the assessee regarding the permissibility of deducting a payment of Rs. 3 lakhs made to terminate an obligation, deeming it a revenue expenditure directly affecting the business. The Commissioner of Income-tax (Appeals) allowed this deduction for the assessment year 1974-75 based on the commitment made prior to the relevant accounting year. en-us Tue, 08 Mar 1994 00:00:00 +0530 Thu, 12 Nov 2009 10:48:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20144 The court ruled in favor of the Revenue regarding the capitalization of interest/discounting charges for machinery purchased under a deferred payment scheme. However, the court sided with the assessee regarding the permissibility of deducting a payment of Rs. 3 lakhs made to terminate an obligation, deeming it a revenue expenditure directly affecting the business. The Commissioner of Income-tax (Appeals) allowed this deduction for the assessment year 1974-75 based on the commitment made prior to the relevant accounting year. Case-Laws Income Tax Tue, 08 Mar 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20144