https://www.taxtmi.com/caselaws?id=21072 The court disallowed the deduction of Rs. 53,410 paid at foreign ports under Section 37 of the Income-tax Act, 1961, as it was deemed income-tax and not a business expenditure. The court did not address the disallowance under Section 40(a)(ii) since Section 37 was inapplicable. However, the court allowed the deduction of amounts owed by the assessee in acquiring a ship when computing capital employed, including funds borrowed from the Shipping Development Fund Committee. The court classified the sum borrowed from the Committee as a debt incurred in acquiring the ship, thus permitting its deduction. en-us Mon, 27 Jan 1992 00:00:00 +0530 Thu, 19 Nov 2009 17:46:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=21072 The court disallowed the deduction of Rs. 53,410 paid at foreign ports under Section 37 of the Income-tax Act, 1961, as it was deemed income-tax and not a business expenditure. The court did not address the disallowance under Section 40(a)(ii) since Section 37 was inapplicable. However, the court allowed the deduction of amounts owed by the assessee in acquiring a ship when computing capital employed, including funds borrowed from the Shipping Development Fund Committee. The court classified the sum borrowed from the Committee as a debt incurred in acquiring the ship, thus permitting its deduction. Case-Laws Income Tax Mon, 27 Jan 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=21072