https://www.taxtmi.com/caselaws?id=30345 Interest income earned by the statutory corporation was treated as business income, but the decisive issue was whether the amounts advanced to State Governments and cooperative societies were deductible as revenue expenditure. The Court held that a repayable loan is not an irretrievable outgo of money and, on these facts, the advances were made in discharge of statutory obligations and to secure an enduring commercial advantage in the money-lending business. They were therefore not allowable as business deductions and were characterised as capital expenditure or mere application of income. en-us Fri, 24 Nov 2006 00:00:00 +0530 Sat, 23 Aug 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=30345 Interest income earned by the statutory corporation was treated as business income, but the decisive issue was whether the amounts advanced to State Governments and cooperative societies were deductible as revenue expenditure. The Court held that a repayable loan is not an irretrievable outgo of money and, on these facts, the advances were made in discharge of statutory obligations and to secure an enduring commercial advantage in the money-lending business. They were therefore not allowable as business deductions and were characterised as capital expenditure or mere application of income. Case-Laws Income Tax Fri, 24 Nov 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=30345