https://www.taxtmi.com/caselaws?id=33856 The High Court of Bombay ruled in favor of the assessee, holding that the interest paid for discounting bills with banks during business activities was allowable under Section 37 of the Income Tax Act. The court emphasized the business expediency and commercial necessity behind the transactions, noting the inconsistency in treatment by the Tribunal and previous acceptance of similar expenditures for subsequent assessment years. The court found the Revenue's contrary stand impermissible and answered the question referred in the negative, disposing of the references with no order as to costs. en-us Mon, 15 Jun 2009 00:00:00 +0530 Tue, 27 Jul 2010 15:47:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=33856 The High Court of Bombay ruled in favor of the assessee, holding that the interest paid for discounting bills with banks during business activities was allowable under Section 37 of the Income Tax Act. The court emphasized the business expediency and commercial necessity behind the transactions, noting the inconsistency in treatment by the Tribunal and previous acceptance of similar expenditures for subsequent assessment years. The court found the Revenue's contrary stand impermissible and answered the question referred in the negative, disposing of the references with no order as to costs. Case-Laws Income Tax Mon, 15 Jun 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=33856