https://www.taxtmi.com/caselaws?id=27791 The High Court of Karnataka ruled in favor of the assessee, a private limited company engaged in manufacturing, allowing the interest amount of Rs. 96,170 paid on money borrowed for purchasing new machinery and land as a revenue expenditure under section 36(1)(iii) of the Income Tax Act, 1961. The Court emphasized that if borrowed capital is used for the business, the benefit of the provision should be granted, regardless of whether the asset purchased with the borrowed capital was utilized, rejecting the Revenue's argument based on conflicting court decisions. en-us Mon, 29 Aug 1983 00:00:00 +0530 Tue, 16 Feb 2010 11:01:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=27791 The High Court of Karnataka ruled in favor of the assessee, a private limited company engaged in manufacturing, allowing the interest amount of Rs. 96,170 paid on money borrowed for purchasing new machinery and land as a revenue expenditure under section 36(1)(iii) of the Income Tax Act, 1961. The Court emphasized that if borrowed capital is used for the business, the benefit of the provision should be granted, regardless of whether the asset purchased with the borrowed capital was utilized, rejecting the Revenue's argument based on conflicting court decisions. Case-Laws Income Tax Mon, 29 Aug 1983 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=27791