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.
CAclubindia
