Deduction of Business Expenditure ::
CA.Saibaburao Nanduri
Author
Court :
High Court
Brief :
Citation :
CIT Vs Indian Pistons Ltd
Deduction of Business expenditure U/s - Section 40(a)(i)
C.I.T. Vs. Indian Pistons Ltd
(2006) 282 ITR 632 (Mad)
Case Fact: Whether interest paid on foreign bills without deduction of tax at source is deductible as business expenditure or whether it is disallowed under section 40(a)(i)?
Decision: Held by the Hon"ble Court that as the interest paid on unpaid installment of foreign bills are not in the nature of interest on loan, hence the provisions of Section 40(a) (i), i.e. allowability of expense after deduction of TDS are not applicable on the same and interest paid is deductible as business expenditure.
Judgement posted by
CA.Saibaburao Nanduri
Chartered Accountant
I am a commerce graduarte of Andhra University. Studied at HINDU COLLEGE, Guntur. Became FCA and started Practice under the name and style of M/s SAIBABU RAO CO I became Chairman of CA Institute, Guntur Branch, during the year 2008-09 My post qualifications are: Information Systems Audit DISA (ICAI) ... Read more
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