https://www.taxtmi.com/caselaws?id=793342 Expenditure on issue of market-linked and non-convertible debentures by an NBFC already carrying on lending business was treated as revenue expenditure deductible under section 37(1), because the funds were raised in the ordinary course of business for onward lending and repayment of borrowings, not for setting up a new unit or extending the undertaking. Section 35D was held inapplicable, as it does not override an otherwise allowable deduction for debenture issue expenditure. The Tribunal applied the principle that expenditure incurred wholly and exclusively for business is deductible, and that the object of borrowing is irrelevant where the spending secures use of money for business purposes. en-us Thu, 14 May 2026 00:00:00 +0530 Sat, 13 Jun 2026 08:36:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=793342 Expenditure on issue of market-linked and non-convertible debentures by an NBFC already carrying on lending business was treated as revenue expenditure deductible under section 37(1), because the funds were raised in the ordinary course of business for onward lending and repayment of borrowings, not for setting up a new unit or extending the undertaking. Section 35D was held inapplicable, as it does not override an otherwise allowable deduction for debenture issue expenditure. The Tribunal applied the principle that expenditure incurred wholly and exclusively for business is deductible, and that the object of borrowing is irrelevant where the spending secures use of money for business purposes. Case-Laws Income Tax Thu, 14 May 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=793342