https://www.taxtmi.com/caselaws?id=59120 The Appellate Tribunal allowed the appeal by a Public Limited Company regarding the deduction of interest and commitment charges for setting up a new unit. They held that the interest and commitment charges were deductible as they were used for expanding the existing business, not starting a new one. The Tribunal emphasized that if borrowed capital is utilized for business purposes, the interest paid is deductible, regardless of production commencement. They overturned the disallowance by the Commissioner (Appeals) and directed the Income Tax Officer to allow the deduction for both interest and commitment charges, granting relief to the assessee. en-us Sat, 15 Dec 1984 00:00:00 +0530 Sat, 25 Dec 2010 11:38:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=59120 The Appellate Tribunal allowed the appeal by a Public Limited Company regarding the deduction of interest and commitment charges for setting up a new unit. They held that the interest and commitment charges were deductible as they were used for expanding the existing business, not starting a new one. The Tribunal emphasized that if borrowed capital is utilized for business purposes, the interest paid is deductible, regardless of production commencement. They overturned the disallowance by the Commissioner (Appeals) and directed the Income Tax Officer to allow the deduction for both interest and commitment charges, granting relief to the assessee. Case-Laws Income Tax Sat, 15 Dec 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=59120