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2010 (1) TMI 852 - AT - Income TaxNature of interest paid on borrowed funds - to be capitalized or allowed as deduction - section 36(1)(iii) - held that:- in view of decision of apex court in Core Healthcare Ltd. (2008 -TMI - 3024 - SUPREME COURT OF INDIA), decided in favor of assessee. Deferred revenue expenditure - Treatment of expenses int eh books of assessee - held that:- the deferred revenue expenditure is essentially revenue in nature and the decision to treat the same as deferred revenue only represents a management decision taken in view of the magnitude of the expenditure involved. For the purpose of allowability of any expenditure under the Act, what is material is the classification between the capital and revenue and the same does not recognise any concept of deferred revenue expenditure. - As far as the entries in the books of account are concerned, it is well settled that they do not clinch the issue either way, and are not determinative of the allowability or otherwise of the expenditure. The decisions of the Hon'ble Supreme Court in the case of Kedarnath Jute Mfg. Co. Ltd. v. CIT (1971 -TMI - 6262 - SUPREME Court) and in the case of CIT v. India Discount Company Limited (1969 -TMI - 5158 - SUPREME Court) are clear on the issue. - Decided in favor of assessee.
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