https://www.taxtmi.com/caselaws?id=37831 The High Court of Andhra Pradesh ruled in favor of a public limited company engaged in sugar manufacturing, allowing the interest paid on advances for agricultural activities as a deductible expense in computing business income. The Court held that the interest paid on borrowings, even if used for sugarcane cultivation, was not directly attributable to agricultural operations and could be claimed as a deduction under the Income-tax Act, 1961. This decision overturned the disallowance by the Income Tax Officer and the Appellate Authority, emphasizing the distinction between direct agricultural expenditure and indirect expenses like interest payments on borrowings. en-us Wed, 28 Sep 1977 00:00:00 +0530 Thu, 01 Apr 2010 12:49:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37831 The High Court of Andhra Pradesh ruled in favor of a public limited company engaged in sugar manufacturing, allowing the interest paid on advances for agricultural activities as a deductible expense in computing business income. The Court held that the interest paid on borrowings, even if used for sugarcane cultivation, was not directly attributable to agricultural operations and could be claimed as a deduction under the Income-tax Act, 1961. This decision overturned the disallowance by the Income Tax Officer and the Appellate Authority, emphasizing the distinction between direct agricultural expenditure and indirect expenses like interest payments on borrowings. Case-Laws Income Tax Wed, 28 Sep 1977 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37831