https://www.taxtmi.com/caselaws?id=20831 Interest on an overdraft raised to discharge estate duty was not deductible as an annual charge under section 24(1)(iv) because the charge was created voluntarily by the assessee to secure the borrowing and interest. The provision applies only to an annual charge that is not a capital charge and is not created by the assessee's own volition, such as a charge arising by operation of law, under a court decree, or as an existing encumbrance attached to the property when acquired. The Court rejected the wider argument that commercial necessity or consideration makes a charge involuntary. The reference was answered against the assessee and in favour of the Revenue. en-us Fri, 23 Oct 1992 00:00:00 +0530 Tue, 17 Nov 2009 14:03:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20831 Interest on an overdraft raised to discharge estate duty was not deductible as an annual charge under section 24(1)(iv) because the charge was created voluntarily by the assessee to secure the borrowing and interest. The provision applies only to an annual charge that is not a capital charge and is not created by the assessee's own volition, such as a charge arising by operation of law, under a court decree, or as an existing encumbrance attached to the property when acquired. The Court rejected the wider argument that commercial necessity or consideration makes a charge involuntary. The reference was answered against the assessee and in favour of the Revenue. Case-Laws Income Tax Fri, 23 Oct 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20831