https://www.taxtmi.com/caselaws?id=49373 Interest paid on money borrowed for acquisition and operation of a plantation is revenue expenditure deductible under section 5(e) of the Madras Plantations Agricultural Income-tax Act, 1955. The legal characterisation applied established capital-versus-revenue tests: whether the outlay creates an enduring asset and whether it forms part of circulating or fixed capital. Interest forming part of circulating or floating capital and used to acquire and work the estate bears a proximate and direct connection to the plantation and is therefore allowable as expenditure laid out wholly and exclusively for the purpose of the plantation. en-us Thu, 30 Apr 1964 00:00:00 +0530 Sat, 23 Aug 2014 11:02:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49373 Interest paid on money borrowed for acquisition and operation of a plantation is revenue expenditure deductible under section 5(e) of the Madras Plantations Agricultural Income-tax Act, 1955. The legal characterisation applied established capital-versus-revenue tests: whether the outlay creates an enduring asset and whether it forms part of circulating or fixed capital. Interest forming part of circulating or floating capital and used to acquire and work the estate bears a proximate and direct connection to the plantation and is therefore allowable as expenditure laid out wholly and exclusively for the purpose of the plantation. Case-Laws Income Tax Thu, 30 Apr 1964 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49373