https://www.taxtmi.com/caselaws?id=20603 The court ruled against the assessee, denying the deduction of interest liability under section 24(1)(iv) of the Income-tax Act, 1961. It held that the charges created to meet tax liabilities, though arising out of financial necessity, were not involuntary, thus disallowing the deduction. The court emphasized that the voluntary or involuntary nature of a charge should be determined by the circumstances of its creation, irrespective of the timing concerning the amendment. The judgment highlighted that the amendment did not have retrospective application, supporting the Revenue's position and providing no order as to costs. en-us Tue, 09 Feb 1993 00:00:00 +0530 Mon, 16 Nov 2009 10:51:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20603 The court ruled against the assessee, denying the deduction of interest liability under section 24(1)(iv) of the Income-tax Act, 1961. It held that the charges created to meet tax liabilities, though arising out of financial necessity, were not involuntary, thus disallowing the deduction. The court emphasized that the voluntary or involuntary nature of a charge should be determined by the circumstances of its creation, irrespective of the timing concerning the amendment. The judgment highlighted that the amendment did not have retrospective application, supporting the Revenue's position and providing no order as to costs. Case-Laws Income Tax Tue, 09 Feb 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20603