Business expenditure- Commitment charges and finance charges
Last updated: 11 March 2008
Court :
SC
Brief :
The assessee-company had borrowed foreign currency loan from IDBI which in turn was refinanced by the foreign company. It paid commitment charges and finance charges to the said foreign company. The questions that arose for consideration were as to (1) whether commitment charges could be allowed as deduction under section 36(1)(iii); and (2) whether finance charges paid to the foreign company were similar to payment of interest under section 36(1)(iii) and, therefore had to be allowed as deduction.
Citation :
Deputy Commissioner of Income-tax, Baroda
v.
Gujarat Alkalies & Chemicals Ltd.
CIVIL APPEAL NOS. 3957 & 3958 OF 2002
DECIDED ON 8-2- 2008
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kavita jain
Published in Income Tax
Views : 62
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