1998 (9) TMI 28

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....o us at the instance of the Revenue is as to whether the Tribunal was right in holding and had valid materials to hold that the interest on the amount borrowed for its Hyderabad facsimile project should be treated as a revenue expenditure and allowed as a deduction in computing the income of the assessee." The assessment year is 1977-78. The assessee is a publisher of the Hindu newspaper. It ha....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....f an enduring nature, that it is obtained only for securing the use of money for a certain period and that it was irrelevant to consider the object with which the loan was obtained. The court further observed that where there is no express prohibition, an outgoing by means of which an assessee procures the use of a thing by which he makes a profit, is deductible from the receipts of the business t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n with the obtaining of the loan such as stamp duty, registration fees, lawyers' fees were held to be allowable items of the expenditure in the case of India Cements Ltd. v. CIT [1966] 60 ITR 52 (SC) and guarantee commission paid for ensuring deferred payment of the purchase consideration of machinery was held to be an allowable item of an expenditure under section 37 of the Act in the case of Add....