https://www.taxtmi.com/caselaws?id=285689 The note addresses whether interest paid pursuant to deferred purchase instalments qualifies as a revenue deduction under clauses (iii) or (xv) of Section 10(2) of the Income-tax Act. It explains that where a consent decree or conveyance conditions make title contingent on full payment and interest is expressly added to the purchase price, such interest constitutes part of the capital consideration for acquiring the asset rather than an expenditure wholly and exclusively for carrying on the business. The operative effect is that interest on deferred instalments payable as part of the purchase consideration is treated as capital cost and is not deductible under those clauses. en-us Wed, 07 Oct 1964 00:00:00 +0530 Wed, 22 Jan 2020 11:53:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=285689 The note addresses whether interest paid pursuant to deferred purchase instalments qualifies as a revenue deduction under clauses (iii) or (xv) of Section 10(2) of the Income-tax Act. It explains that where a consent decree or conveyance conditions make title contingent on full payment and interest is expressly added to the purchase price, such interest constitutes part of the capital consideration for acquiring the asset rather than an expenditure wholly and exclusively for carrying on the business. The operative effect is that interest on deferred instalments payable as part of the purchase consideration is treated as capital cost and is not deductible under those clauses. Case-Laws Income Tax Wed, 07 Oct 1964 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=285689